Retailers call for cut in Ontario's sales tax

Last Updated: Monday, May 7, 2001 | 1:39 PM ET

CBC News

Ontario's retailers are calling on the provincial government to cut the sales tax by one percentage point – a move the Retail Council of Canada said would put $1.7 billion a year back in the pocketbooks of Ontarians.

The Retail Council called on Ontario Finance Minister Jim Flaherty to cut the provincial sales tax from the current eight per cent when he delivers the provincial budget on May 9.

"Ontario consumers face an uncertain economic outlook," said Diane Brisebois, the Retail Council's president and CEO.

"A cut of one per cent in the PST (provincial sales tax) would bolster confidence and put more dollars directly into consumers' wallets," Brisebois said.

Citing figures from Statistics Canada, the Retail Council said shoppers spent $106.3 billion in Ontario's stores last year, or an average of $295 million each day that stores were open for business. Shoppers paid another $23 million each day for provincial sales tax on these purchases, the industry organization said.

Brisebois also said Ontario's retail sector employs more than 650,000 Ontarians.

"A cut in the sales tax will provide an immediate boost, stimulating investment in the province, job growth, consumer confidence and spending power," she said.