November 6, 2020
FOR IMMEDIATE RELEASE
Mississauga Board of Trade Welcomes
Ontario’s Action Plan: Protect, Support, Recover
Mississauga, Ontario –Today, Ontario Finance Minister the Hon. Rod Phillips delivered Ontario’s first full COVID-19 pandemic budget for 2020-2021. See the Provinces News Release
Like all budgets there are items that provide benefits and supports to Ontario businesses and also have areas for concern.
Ontario’s Action Plan: Protect, Support, Recover — the next phase of Ontario’s plan to respond to the serious health and economic impacts of COVID-19 now sets out a total of $45 billion in support over three years to make available health resources to continue protecting people, deliver critical programs and tax measures to support individuals, families and job creators impacted by the virus, and lay the groundwork for long-term economic recovery for the province.
The government is now delivering an estimated $13.5 billion in total support for people and job creators as part of Ontario’s Action Plan. This additional relief will ensure families, seniors, businesses and workers are supported through the second wave of COVID-19 and beyond.
Some welcome announcements in the Budget include:
Reducing commercial and industrial electricity rates that will make Ontario businesses more competitive and enable them to invest in recovery and growth. For years, Ontario businesses have paid more for electricity than most other jurisdictions in North America, and the pandemic has only increased electricity system costs.
Business Education Tax rates vary throughout Ontario. The government has announced it will both reduce the BET rate and address regional variances within that rate.
A decision to make the higher Employer Health Tax threshold permanent is a welcome one that will free thousands of businesses from having to pay this tax.
A move to allow municipalities to target property tax relief specifically to small business is a creative and important tool to grant communities, given that small business has been hardest hit by the pandemic.
The Province is proposing a new Seniors’ Home Safety Tax Credit for the 2021 taxation year, which would provide a 25 per cent credit on eligible renovations of up to $10,000.
The government is making available $300 million in relief for eligible businesses in regions where the Province determines modified Stage 2 public health restrictions are necessary, or going forward, in areas categorized as Control or Lockdown. This will help cover fixed costs such as property taxes and energy bills. The government is also providing an additional $1.8 billion in the Support for People and Jobs Fund over the next two years to remain responsive to emerging needs and continue providing supports for the people of Ontario.
The Budget also does not propose any new tax increases to businesses or individuals but does project a $38.4 billion deficit in the fiscal year that will end on March 31, 2021.
The Minister of Finance has promised another budget before the end of the fiscal year.
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Vice-President, Government & Stakeholder Relations Mississauga Board of Trade
[email protected] 647-745-9748
About the Mississauga Board of Trade
Since being established in 1961, MBOT has played an important leadership role serving and representing the interests of business of all sizes and sectors in our community.
Mississauga is Canada’s sixth largest city and third largest in Ontario – with a population of close to 800,000 residents and over 50,000 businesses employing over 440,000 people, including 60 Fortune 500 Canadian headquarters. Mississauga is where successful companies choose to do business.
MBOT’s large, diverse and active membership has made us one of the most vibrant business
associations in Canada.
As the “Voice of Business” we advocate on policy issues that impact local business at all levels of government and are influential in helping to shape policy decisions. MBOT also offers a wide variety of valuable business services and professional development programs, networking events and marketing opportunities, to help business grow, prosper, and get connected.