Beer in Ontario Grocery Stores:  But it will cost more

The Ontario provincial budget was presented on April 23 and although it contains no new personal or corporate taxes and only a few changes to beer drinkers, corporate credits and drivers might be particularly interested in this document. 

In addition, the film industry has been negatively affected by budget change in this province, too.

The budget reduces the Ontario Production Services Tax Credit rate from 25% to 21.5% and further adds restrictions to ensure that Ontario labour costs are more than a trial part of the production costs.

In a good news, bad news story, beer drinkers will be happy to know that beer will eventually be available in grocery stores in the province, but this won’t be speedy:  it will take 10 years to fully  implement the new rules.  Still, beer may be available in some grocery stores by Christmas 2015.  Now, the bad news:  the tax on beer will increase by three cents per litre effective this November.  That means an increase of about twenty-five cents on a 24-pack.

Ontario drivers will get a break on their insurance rates if they use winter tires.  However, the standard deductible increases from $300 to $500.  In addition, the government intends to review all user fees, such as driver’s licenses to ensure full cost recovery.

The government projects a decline in the provincial deficit to $8.5 billion for the 2015-2016 budget year and projects to continue the deficit reduction to produce a balanced budget for the 2017-2018 budget year.   To raise funds, the Ontario government proposes to sell off 60% of Hydro One - the provincial utility that currently owns 97% of the Ontario transmission lines.