Ontario's Tax Plan A Good Fit For Peterborough Food Processor
McGuinty Government Continues to Support Companies Including PepsiCo Foods
Agri-food businesses such as PepsiCo Foods in Peterborough will benefit from Ontario's new Tax Plan for Jobs and Growth which includes significant tax cuts and the move to a single, Harmonized Sales Tax (HST).
PepsiCo is Canada's leading supplier of Quaker Oatmeal and Chewy Bars, Tropicana juices, and various Frito-Lay snack products.
As a result of the HST and business tax cuts, taking effect on July 1, 2010, the tax rate on business investments in Ontario will be cut in half, making Ontario one of the most competitive jurisdictions in the world.
Once tax changes are fully phased in, PepsiCo and other manufacturing companies will save $1.2 billion annually. These savings include $485 million through the tax credits which will be part of the HST, $410 million through corporate income tax savings, and $320 million from eliminating the capital tax.
PepsiCo Foods is a good example of an Ontario company that will benefit from the new tax reform -- a key part of the Open Ontario plan to create jobs and economic opportunities.
- Under the HST, Ontario's businesses will deal with one sales tax instead of two, one set of rules instead of two and one level of government instead of two.
- A single tax system will put Ontario on a level playing field with four other provinces and 140 other countries that already have a value added tax like the HST.
- Experts say Ontario's tax plan, which includes tax breaks for people and large and small businesses, will lead to increased investment and almost 600,000 new jobs.
- Businesses will save more than $500 million a year in administrative and compliance costs.
“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.”
“A competitive tax system, together with the investments that the government has made in this facility is a great boost for our plant and for the local economy. PepsiCo Foods Canada is proud of this peanut-free facility and grateful for the government support that is helping make it happen.”
“The HST is really going to help the businesses and people who live in this community. Our 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.”