Five-Cent Bag Fee in Toronto Another Blow to Consumers; Canadian Taxpayers Federation Urges Ontario to Rescind City's Special Taxing Authority

    TORONTO, Jan. 12 /CNW/ - The five-cent plastic bag levy implemented by
Loblaw today, six months ahead of the fee being made mandatory by Toronto, is
just another unnecessary tax that the city's residents are being forced to
    "People will still need plastic bags for their garbage, organic waste,
and other uses such as picking up after their pets. The only difference is
that the city is making them more expensive," said Kevin Gaudet, Acting
Federal Director of the Canadian Taxpayers Federation (CTF).
    It is estimated that the five-cent charge will generate $44 million a
year in Toronto - money the retailers will be permitted to keep.
    The CTF is calling on the province of Ontario to rescind taxing powers in
the City of Toronto Act (COTA) which granted wider taxing authority to
Toronto. "Toronto intends to bring in an array of new taxes, and we believe
this is an abuse of power," said Gaudet.
    Currently the province is undertaking its mandatory review of the City of
Toronto Act (COTA). Taxpayers have already been hit with a new garbage tax, a
new land transfer tax and a new vehicle registration tax. The five-cent bag
fee is the fourth new tax imposed by David Miller and City Hall.
    The bags cost a penny apiece, and retailers are going to charge five
cents per bag. That's a 500-per-cent profit. Families struggling during these
difficult times do not need extra costs added to their grocery bills as this
new tax will do.
    Gaudet also noted that another problem with the tax is that it is of
questionable legality. Essentially, it is a form of price controls.

For further information:

For further information: Kevin Gaudet, (416) 203-0030

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Canadian Taxpayers Federation

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