TORONTO - A lobby group representing small businesses says its
members are very worried about Ontario's plan to harmonize its
provincial sales tax with the GST.
Many large companies and the
Chamber of Commerce support the plan to switch to a single, 13 per cent
sales tax in Ontario, which they say will lower their costs and prices
However, the Canadian Federation of Independent
Business says smaller businesses are worried about charging consumers
such a high sales tax on their products or services.
A survey of 3,000 small businesses by the CFIB found 75 per cent fear the 13 per cent tax will be a big negative for customers.
Minister John Wilkinson says the report shows people don't understand
that the Liberal government's tax reform package includes an 18 per
cent cut to the small business tax rate.
The survey found 44 per
cent of small businesses who responded believe the higher single sales
tax will trigger growth in the underground economy.
and British Columbia plan to merge their provincial sales taxes with
the five per cent goods and services tax starting next July.