Hudak vows to reduce HST from power bills


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Ontario PC Energy Tax Relief proposes cutting 8% HST from hydro and home heating, removing the debt retirement charge, lowering electricity costs, and delivering about $275 in savings to typical Ontario households.

 

The Situation Explained

A PC plan to cut 8% HST on hydro and heating and scrap the debt charge, lowering Ontario energy bills by about $275.

  • Removes 8% HST from hydro and home heating bills
  • Ends debt retirement charge on residential hydro
  • Estimated savings about $275 per household
  • Costs about $1.2B in foregone provincial revenue

 

Progressive Conservative Leader Tim Hudak is promising to remove the provincial portion of the HST from hydro and heating bills.

 

Hudak also said a Tory government would also remove the debt retirement charge from home hydro bills, offering a break on power bills for a total savings of almost $300.

“I will fight this unfair burden and, with a hydro bill relief plan in Ontario, make energy more affordable for Ontario families,” he told reporters.

Hudak has made energy costs a centrepiece of his campaign, saying hydro rates are hurting budgets ahead of the October 6 election.

The Tory promise would remove eight percentage points of the 13 per cent Harmonized Sales Tax, as the NDP urges an HST cut on power bills, from residential hydro bills and from residential home heating bills.

“After talking to families, party members and our unprecedented ‘Have Your Say Ontario’ survey, it’s clear that people in Ontario want relief, including tax relief for seniors on power bills, from Dalton McGuinty’s HST and skyrocketing hydro bills,” Hudak said.

The PC leader said his promise would give a typical Ontario household $275 in immediate relief from energy bills.

The Tory measure would cost about $1.2 billion in lost tax revenue from heating and electricity.

Hudak acknowledged that he can't scrap the HST across the board as it would mean paying back more than $4 billion given to the province by Ottawa to implement the harmonized tax.

 

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