The Ontario Liberals tabled legislation on Nov. 16 to create the long-debated harmonized sales tax (HST), which will effectively merge the provincial eight per cent sales tax with the five per cent GST.
The tax would take effect July 2010, alongside other reductions in corporate income tax laid out in the legislation.
This includes a reduction in the corporate income tax (CIT) rate, which would drop from 14 per cent to 12 per cent, and then further reduced to 10 per cent over three years. The small business CIT rate would be cut from 5.5 per cent to 4.5 per cent, while the small business deduction surtax of 4.25 per cent would be eliminated.
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