TORONTO, Ont. — Though a huge provincial deficit didn’t leave much room for new policies or programs, the Ontario Trucking Association says it was still pleased with the mentions of continued infrastructure investment and new tax measures in the 2010/2011 Ontario Budget.
The government intends to continue to invest heavily in maintaining and expanding the provincial highway system, committing more than $2 billion over the next year. Among the projects is the expansion to four lanes of the 100-kilometre section of highways 11/17 between Thunder Bay and Nipigon. Construction is slated to begin this year.
The budget also confirmed that when it eliminates the multi-jurisdictional vehicle tax (MJVT) on July 1 as part of the move to the HST, carriers will not have to pay any exit tax. OTA lobbied hard for this provision in the HST package and OTA president, David Bradley said: “We are very pleased by this; it should help a lot of carriers.”
In addition, the government re-confirmed that it would follow through on previously announced corporate income tax rate cuts with the rate dropping from 14% to 12% this year and 10% in three years.
“Although this budget was a relatively uneventful document, given the concern over the fragility of the current recovery for Ontario’s export-based economy and the likelihood of budgetary deficits for years to come, one can’t help but wonder what future budgets will have in store,” the OTA said in a release.
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