Ontario introduced new supports for businesses impacted by public health measures intended to curb the spread of the Omicron variant. These supports include a new Ontario Business Costs Rebate Program and a six-month interest- and penalty-free period to make payments for most provincially administered taxes.
“Ontario businesses have already contributed so much to the province’s fight against COVID-19,” said Peter Bethlenfalvy, Minister of Finance. “We recognize that these necessary capacity limits to reduce the transmission of the virus will impact businesses."
Through the new Ontario Business Costs Rebate Program, eligible businesses receive rebate payments equivalent to 50 per cent of the property tax and energy costs they incur while subject to the current capacity limits. This will provide support to businesses that are expected to be most impacted financially by the requirement to reduce capacity to 50 per cent.
Examples of businesses eligible for the Ontario Business Costs Rebate Program include restaurants, smaller retail stores and gyms.
In mid-January 2022, a list of eligible business types will be available through a program guide. At that time, online applications will open. Payments will be retroactive to Dec. 19, 2021. Businesses will need to submit property tax, energy bills, and other applicable information.
“I commend business owners for pivoting quickly as we respond to the Omicron variant in our continued fight against COVID-19,” said Todd Smith, Minister of Energy. “It is essential that we support them during their time of need, and that’s why our new rebate program will provide them with the support they need right now on their energy bills.”
To help improve cash flow, hard-hit businesses will receive a six-month interest- and penalty-free period to make payments for most provincially administered taxes. This will apply while capacity restrictions are in place, providing the flexibility businesses need for long-term planning. The six-month period will begin January 1 and end July 1, 2022.
This measure will provide up to $7.5 billion in relief to help approximately 80,000 Ontario businesses.
Provincially administered taxes
- Employer Health Tax
- Beer, Wine & Spirits Taxes
- Tobacco Tax
- Insurance Premium Tax
- Fuel Tax
- International Fuel Tax Agreement
- Gas Tax
- Retail Sales Tax on Insurance Contracts & Benefit Plans
- Mining Tax
- Race Tracks Tax
Also, Chrystia Freeland, Canada's Minister of Finance, announced federal plans to extend the Local Lockdown Program and the Canada Worker Lockdown Benefit.