For Immediate Release
March 26, 2009

Ontario budget rejects Sales Tax holiday for vehicle sales
McGuinty Government, “just doesn’t get it”

Queen’s Park – Hundreds of names on petitions, letters to the minister, requests from auto dealers, news conferences, and continued pressure from MPP Toby Barrett and the Ontario Opposition, failed to convince the Ontario government to allow a sales tax holiday on new vehicles sales.

Today’s Ontario budget fell well short of Opposition demands for economic incentives, including no mention whatsoever of the sales tax cut that would lend struggling auto dealers a helping hand and stimulate Ontario’s economy, including the steel industry and auto suppliers.

“These guys just don’t get it,” Barrett lamented. “This remains a tax and spend government.”

In 1980, the Bill Davis government implemented a tax holiday on the purchase of 1979 model cars. This generated a 17 per cent increase in car sales.”

As opposed to company and union bailouts, a tax holiday on auto sales would have been one way to offer citizens a more direct benefit from the expenditure of their taxes.

However, in response to one of Barrett’s recent letters to the Minister of Finance advocating a sales tax holiday, the Minister wrote: “With respect to a time-limited suspension of the RST on the purchase of automobiles, this may not be the best form of tax support for ensuring long-term economic competitiveness in Ontario.”

“I regret that this government can’t see the benefit of this proposal,” concluded Barrett. “Our auto dealers and steel makers could have used the significant economic boost this initiative would have provided.”

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