As members of the public finally had the chance to have their say on the upcoming harmonized sales tax (HST), the federal government approved a motion allowing the province to implement the combined 13 per cent levy.
Public hearings on the HST, which will take effect in July, started Thursday. Many of the groups who spoke were critical of the plan.
"You can't keep raising your prices and expect people to come through your doors," argued Sue Cannon of the Bowling Proprietors Association of Ontario.
"That a tax change that the government suggests is the most major of its kind in our province's history, to not speak to the Ontario public, is unprecedented," Progessive Conservative MPP Lisa MacLeod charged.
Both the Progressive Conservatives and the NDP called on the government to hold the meetings across the province, but the Liberals will only be hearing arguments in Toronto.
And initially, the Liberals said there would only be one public meeting.
The government only agreed to add
Monday's half day of hearings after the NDP used a procedural move that would
have had Thursday's committee hearing start at one minute after midnight.
"There was no logical reason to wait from March until November to introduce the bill so that we could begin. And there was absolutely no logical reason from the outset to refuse to have public hearings until the arms were twisted," Michael Prue, NDP MPP, said at the hearing.
The were a few groups in support, including the Certified General Accountants of Ontario.
"We believe HST will benefit businesses within Ontario and enable Ontario businesses to be more competitive," CEO Doug Brooks outlined.
"It will ease administration costs and make compliance easier."
Len Crispino of the Ontario Chamber of Commerce is also in favour of the HST.
"I do think this is a job creator...This frankly should have happened 10 or 15 years ago."
Anger over the lack of public consultation prompted PC MPPs Bill Murdoch and Randy Hillier (pictured) to stage a sit-in at the Legislature this week, after they were suspended from the remaining portion of the fall session.
The pair demanded the government hold at least one public hearing on the HST outside of Toronto. The politicians ended their protest and offered an apology to the Speaker, even though their request wasn’t fulfilled.
The Liberals plan to merge the five per cent federal GST with the eight per cent provincial sales tax.
Several groups, including the Canadian Taxpayers’ Federation, condo owners, police pensioners, and home care operators claim the HST will drive up the cost of items and services currently exempt from the provincial sales tax.
The government claims its plan will create jobs and boost the economy. The Liberals say they’ll offer Ontarians a rebate cheque to offset the initial sting of the HST, and cut personal and corporate taxes.
Native groups, meanwhile, who are currently exempt from point-of-sale taxes, will have to save their receipts and apply for a rebate at the end of the year.
In Ottawa, the Conservatives, Liberals and Bloc Quebecois all voted in favour of a motion amending the Excise Tax Act to implement the HST in Ontario and BC. The NDP voted against the measure.
Many MPs were absent from Thursday's vote on the tax, which has proven to be a political hot potato, because it's so unpopular with voters.
With files from The Canadian Press.