With the ongoing economic uncertainty created by Donald Trump’s tariffs, the Ontario government says it is deferring a number of taxes for businesses to free up cash flow.
“We can’t control President Trump, but we’re in full control of the kind of future we build for ourselves,” Premier Doug Ford said in a statement Monday. “The best way to protect Ontario is to build the most competitive economy in the G7, breaking down internal trade barriers and diversifying our trade so we can build a more resilient, prosperous and secure province.”
In a new release, the province said it will pause collection of approximately $9 billion worth of taxes, including 10 business-focused tax programs.
Those include the Employer Health Tax, Insurance Premium Tax, Gasoline Tax, Fuel Tax, Mining Tax, Tobacco Tax, International Fuel Tax Agreement, Beer, Wine & Spirits Tax, the Retail Sales Tax on Insurance Contracts and Benefit Plans and the Race Tracks Tax.
While the taxes will not be collected from April 1 until Oct. 1, the taxman will still be looking for his money once that period comes to a close, although the province says it will not be charging interest.
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In addition, for the second time in as many months, the Workplace Safety and Insurance Board will also be issuing another $2 billion rebate for “safe employers.” It made a similar move in March.
“We are ready to protect Ontario’s workers, businesses and families from the economic uncertainty of U.S.-imposed tariffs,” said Finance minister Peter Bethlenfalvy in a statement. “Today’s measures help Ontario to weather the storm while continuing to build on our plan for ongoing prosperity.”
A release from the province also noted that it plans to break down internal trade barriers while making Ontario’s economy the most competitive of the G7 nations.
“The government is ready to do whatever is necessary to protect Ontario,” the province said.
Last Thursday, Trump announced new tariffs on the auto sector as well as a long list of countries around the globe, which raised continuing concerns about a global trade war.
Trump had previously introduced tariffs on a number of other imports including steel and aluminum, pharmaceuticals and a number of other areas.
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Ontario defers tax collection for businesses amid Trump tariff fallout
