Ontario families will not see a change in tax on 83 per cent of purchases when the Harmonized Sales Tax (HST) comes into effect July 1.

For example basic groceries, municipal transit and prescription drugs will continue to be exempt from sales tax. Other products will be eligible for point-of-sale rebates for the eight per cent provincial portion of the HST. These include newspapers, books (including audio books), diapers, children’s clothing and footwear, children’s car seats and booster seats, feminine hygiene products, and prepared food and beverages sold for $4 or less.

This is part of Ontario’s modernization of an out-dated, 50-year-old, tax system. The plan also includes permanent income tax cuts for families and businesses, and permanent sales tax credits. In addition to these changes, families will begin receiving Ontario Sales Tax Transition Benefit (OSTTB) payments today as part of Ontario’s tax plan. These tax free transition payments are the first of up to three payments that will provide eligible families with up to $1,000, and individuals with up to $300.

This Tax Plan for Jobs and Growth  is a key component of the five-year Open Ontario Plan, which supports job creation and enhances the programs and services, including education, health care and skills training, that Ontarians value.