City asks province to take the HST off heat, hydro, and fuel

North Bay's new city council was unanimous in their support of Councillor Mike Anthony’s motion to have the HST exemptions be applied to essential products like home utilities and fuel for vehicles.

"It (HST) was good in that it updated and modernized our out-of-date taxation system. It made sense to blend the two taxes that are on so many products,” Anthony says pointing out the HST was both good and bad.

“It was bad, in the sense that products and services that previously had only ONE level of tax (GST) suddenly had the PST 8% added on for the first time. While dozens and dozens of items have this new tax added; the biggest hit to our pocketbooks, especially here in Northern Ontario, may very well come from the added costs to heating our homes and travelling further in our vehicles to reach destinations.”

The motion, seconded by Councillor George Maroosis, was passed unanimously and while the request will go to the usual provincial ministries Anthony says the motion doesn't stop there.

“We're directly contacting our largest Northern neighbours: Sudbury, The Sault, Timmins and Thunder Bay to ask them to pass similar motions.”

“As well, we'll send it to AMO (Association of Municipalities of Ontario) and FONOM (The Federation of Northern Ontario Municipalities) to consider and pass on to other cities and towns.”

"We acknowledge the province did well to update the tax system, but we also ask them to recognize that new taxes on essential items like heat, hydro, and fuel for vehicles could be removed,” says Anthony pointing out that the motion is respectful.

“HST exemptions are certainly possible. The province has worked with the federal government to make changes that helped Toronto Estate; and acknowledged push-back from other business sectors and removed the ‘new taxation’ from coffee, daily newspapers, magazines, and some fast food meals.”

Anthony says he and Councillor Maroosis believe it only makes sense, and could fix an inequity, to have exemptions that allow people to stay warm in their homes and travel in their cars.