Toronto Board of Trade

Toronto Board of Trade

October 19, 2007 20:41 ET

Board of Trade says City Compromise "Reasonable"

Compromise plan reduces business impact of proposed taxes

Attention: Business/Financial Editor, City Editor, News Editor, Government/Political Affairs Editor TORONTO, ONTARIO--(Marketwire - Oct. 19, 2007) - The Toronto Board of Trade says a modified City proposal that reduces the impact on business is a reasonable compromise under the circumstances to see Toronto through the 2008 budget crisis.

"We never want to see taxes go up and oppose the land transfer tax in principle. We have said that taxes should be a last resort to resolve Toronto's financial crisis," says Board of Trade President & CEO Carol Wilding.

"Toronto has reached that last resort. There is not enough time for downloading, expenditure reviews or other measures to close the entire 2008 budget gap. So, we are accepting a compromise proposal that is reasonable under the circumstances."

Wilding points out that the modified proposal contains several important measures for reducing the business impact, including:
· Reducing the proposed $90M a year cost to business by up to $10M a year by lowering the land transfer tax rates on commercial and industrial buildings
· Redirecting the new tax revenues to municipal infrastructure as provincial uploading takes place
· Accelerating the plan to reduce Toronto's business property taxes by five years, reaching the targeted tax ratio level by 2015 instead of 2020

"Should this proposed compromise be approved by Council, we will hold the Mayor and Council closely accountable for fulfilling all of the terms," vows Wilding. "Most importantly, the City must recognize that 2008 is just a symptom. We must deal with the underlying problems with a long-range, sustainable fiscal plan that includes uploading, expenditure control, and a commitment to building a stronger business climate."

The Toronto Board of Trade is the champion of a competitive and vibrant Toronto with a mandate to serve, connect and represent the city's business community. Founded in 1845, Canada's largest chamber of commerce operates at locations across Toronto. Information about Board policies, facilities, services and products are available on its website at www.bot.com. Further comment is on the BOT Blog at www.bot.com/blog.
/For further information: www.bot.com/media/ IN: ECONOMY, FINANCE, POLITICS

Contact Information

  • Glen Stone, Public Affairs Director, Toronto Board of Trade
    Primary Phone: 416-862-4565
    Secondary Phone: 416-998-9458
    E-mail: gstone@bot.com