Ontario's Tax Plan A Good Fit For Farming Sector
McGuinty Government Supporting Agri-Food Businesses Including St. Eugene Farm
Farmer-entrepreneurs like John Skotidakis of St. Eugene will save hard-earned dollars as a result of Ontario's new tax plan, which includes significant tax cuts and the move to a single, Harmonized Sales Tax (HST).
Skotidakis Goat Farm is a 500-acre goat farm and 24,000 square foot cheese and dairy production facility. After July 1, when Skotidakis purchases computers, freezers or other equipment, he will no longer pay sales tax which will help the company as it expands its operations.
This is a good example of an Ontario agri-food business that will benefit from the new tax reform - a key part of the Open Ontario plan to create jobs and economic opportunities.
- The Skotidakis Goat Farm received support from the Rural Economic Development Initiative earlier this year to help expand his business. This will include processing an additional seven million additional litres of milk, manufacture 30,000 cases of cream cheese bars for a major grocery chain, create 10 new jobs and continue to employ 45 people.
- Farmers will continue to pay no tax on the majority of inputs they buy such as feed, seed, fertilizer, farm equipment and machinery, which are currently tax-exempt at the point of sale.
- It is estimated that Ontario's farmers will save about $30 million annually under the Harmonized Sales Tax on items that are currently not exempt from the Retail Sales Tax.
“When the HST begins on July 1, it will be a step forward for our agri-food businesses. These tax reforms will help make Ontario's economy more competitive and create jobs, and when our economy is stronger, our farmers, agri-food businesses and rural communities grow stronger too.”
“Our farm is going to see savings thanks to the HST. Not only will we continue to pay no tax on most of the things we need, like feed and farm equipment, but it will also free up money that I can reinvest in my farm and expand my operation.”
“The HST is going to really help the businesses and people who live in this community. Our small businesses will be more competitive because of corporate tax breaks and the elimination of the small business deduction surtax, and our residents will have more money in their pockets because of cuts to personal income tax and simplifying the sales tax. The HST is really a win-win for rural communities.”
Jean Marc Lalonde