Tax Plan Will Drive The Auto Sector Forward

 
 

June 28, 2010 1:35 PM

McGuinty Government Tax Plan To Help Auto Manufacturers and Workers

Ontario's new tax plan will make the automotive sector more competitive and help create jobs

Effective July 1, the tax plan includes tax cuts for families, businesses and combines two existing sales taxes into one - the HST - removing hidden taxes that businesses and consumers pay on everyday goods.

The plan will help strengthen the automotive industry by:

  • Reducing the Corporate Income Tax rate for manufacturers to 10 per cent from 12 per cent.
  • Reducing the Corporate Minimum Tax rate to 2.7 per cent from 4 per cent.

This reduction in tax burden will attract business to Ontario's automotive sector. This is good news for the hundreds of thousands of Ontarians employed directly or indirectly in the industry as it will help this sector continue to be competitive in the global market and retain and create jobs here at home.

Additionally, automakers will receive more input tax credits for the HST paid on most business costs and investments. These input tax credits will allow the auto sector to reduce costs and become more competitive. This will help make Ontario an even more attractive place to invest and do business.

This tax package is a key component of the five-year Open Ontario plan, which supports job creation and enhances the programs and services, including education, health care and skills training, that Ontarians value.

QUICK FACTS

 
  • In 2009, Ontario industry produced 1.48 million automobiles and accounted for 10 per cent of Canada's manufacturing output.
  • Capital Tax was eliminated for manufacturing and resource firms on January 1, 2007 and will be eliminated for all other Ontario businesses on July 1, 2010.
  • On July 1, the Corporate Income Tax rate for income from manufacturing and processing, farming, mining, logging and fishing will be cut to 10 per cent from 12 per cent.
  • By 2013 Ontario will have the lowest corporate income tax rate in North America.

CONTACTS

  • Leslie O'Leary (Media Only)
    Minister's Office
    416-314-4816
    Leslie.O'Leary@nullontario.ca
  • Scott Blodgett (Media Only)
    Ministry of Revenue
    416-325-0324
    Scott.Blodgett@nullontario.ca
  • Public inquiries:
    (Toll-free in Ontario only)
    1-800-337-7222



Ministry of Revenue
ontario.ca/revenue


 

"The automotive industry is integral to Ontario's economy. Our Tax Plan for Jobs and Growth is going to make our auto sector more competitive. And a competitive auto sector means more jobs and a stronger Ontario. "

 – John Wilkinson
Minister of Revenue

"The McGuinty government supported the auto sector through the global economic recession to preserve jobs and help the industry innovate and advance. Our Tax Plan for Jobs and Growth will ensure Ontario's auto sector is well positioned to succeed in an increasingly competitive global economy and continues to create good jobs right here in Ontario."

 – Dwight Duncan
MPP Windsor-Tecumseh, Minister of Finance

"Our auto sector remains a critical component of Ontario's economy - providing approximately 400,000 jobs throughout the province. We're continuing to support this sector and these jobs by creating the most competitive tax environment in North America."

 – Sandra Pupatello
MPP Windsor West, Minister of Economic Development and Trade

 
 
 
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