McGuinty government ends unaffordable tax cuts and freezes auto insurance rates

Archived Release

McGuinty government ends unaffordable tax cuts and freezes auto insurance rates

Ministry of Finance

Tax, auto insurance bills given Royal Assent as legislative session wraps up TORONTO, Dec. 19 - The McGuinty government has delivered on its agenda to bring real, positive change to auto insurance and order to the province's finances with the passage of Bill 2 and 5 in the Legislature yesterday. "With these two acts of the Legislature, we're ending unaffordable tax cuts, and we're protecting motorists from skyrocketing auto insurance premiums for private passenger autos," Finance Minister Greg Sorbara said. "As the legislative session ends, we're proud to show Ontarians that we are taking government in a new direction." The Fiscal Responsibility Act, 2003 and The Automobile Insurance Rate Stabilization Act, 2003 - both of which received Royal Assent this week - will: - Roll back corporate tax cuts for big businesses to the levels in effect before October 2001; - Eliminate the seniors' education property tax credit; - Eliminate the private school tax credit; - Take the first step towards raising the tobacco tax to the national average; - Extend, until Mar. 31, 2004, the retail sales tax rebate on certain EnergyStar-rated appliances; - Maintain personal income tax rates and surtax rates at the current level; - Force every insurer affected by the auto insurance rate freeze to refile with the Superintendent of Financial Services, by Jan. 23, 2004 or a day specified by the Superintendent not more than 30 days after Jan. 23, for approval of new rates for private passenger autos; - Allow the Superintendent to require insurers to reduce or vary their rates; and - Introduce serious penalties if rates or risk classification changes are implemented without the Superintendent's prior approval. "On Oct. 2, the people of Ontario chose change," Sorbara said. "They chose a new government to deliver real, positive change - to grow our economy, deliver excellent public services, and live within our means. We were honoured by their choice, and we will justify their trust." Disponible en fran├žais For more information visit www.gov.on.ca/finFor further information: Contact Diane Flanagan, Minister's Office, (416) 212-0634; Christian Bode, Ministry of Finance, (416) 212-1438