PC MPP MacLeod demands Minister to Exempt HST or Grandfather Existing Agreements for Funeral Services

For Immediate Release                                                                         April 6th, 2009

(Queen’s Park) – We’ve all heard that death and taxes are inevitable, but thanks to the McGuinty Liberal’s HST plan the government will be putting a 13% death tax costs on all funeral services from caskets to tombstones.

“This government is taxing us to the grave, and now you want to tax us in death,” stated MacLeod after questioning the Consumer Services Minister today.  “Minister, will you exempt the bereaved and dying from this 13% death tax?”  In which Harinder Takhar did not reply with an answer. 

MacLeod continued to the press the Minister for a commitment to Ontarians to grandfather existing funeral home contracts that have been sold and are sold up to July 1, 2010.  Again, Harinder Takhar did not reply with an answer.

Starting on July 1, 2010, funeral services will be subjected to the harmonized sales tax. When passed, this budget will mean additional costs to families dealing with a loss of a loved one. Lawyer's fees to administer a last will and testament, accounting fees to settle the estate, floral arrangements, catering services and other funeral-related costs will all be subjected to McGuinty's new harmonized sales tax.

According to the Board of Funeral Services, the average cost of a funeral in Ontario is around $5,500 – but when you add up the flowers, reception, and casket that cost goes up to $9-$10,000. 

MacLeod concluded; “this government is taxing us to the grave, and now they want to tax us in death.”

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For more information, contact Jad Haffar at (416) 325 -6351

 LEGISLATIVE ASSEMBLY OF ONTARIO

ASSEMBLÉE LÉGISLATIVE DE L'ONTARIO

Monday 6 April 2009

Taxation

Ms. Lisa MacLeod: To the Minister of Government and Consumer Services. Death and taxes might be inevitable, but thanks to the Liberals’ HST plan, your government is putting a 13% death tax on all funeral service costs, from caskets to tombstones. Will you exempt the bereaved and dying from this 13% death tax or will you favour the much lower 5% GST: yes or no?

Hon. Harinder S. Takhar: Let me say this: I am very proud of the budget that was presented by the Minister of Finance. It strikes a very exact balance that we need to keep our economy moving at this point in time. This budget has actually $10.6 billion worth of tax savings for Ontarians, and out of that, $4 million in cash payments to 6.5 million Ontario families and individuals. Families making less than $160,000 will get about $1,000 in the HST ??debate as a transitional year, and then going forward they will get about $260 worth of tax credits going forward as well. These are some of the measures that are being taken in order to offset the impact of the HST harmonization, or the single tax, as we call it—

The Speaker (Hon. Steve Peters): Thank you. Supplementary.

Ms. Lisa MacLeod: What I got out of that is your government is going to tax us to the grave and now you want to tax us to death. On July 1, 2010, Ontarians will be paying a 13% tax on funeral services, a 13% tax on caskets, a 13% tax on flowers, and yes, a 13% tax on final resting places. Under the Liberal HST plan, the bereaved and the dying will have to dish out 8% more on their funeral services. That could be at least $1,200 per bereaved family. Since you won’t exempt the dying and the bereaved from paying a 13% increase in death taxes, will you commit to Ontarians today in this chamber that you will grandfather existing funeral home contracts at the 5% GST that have been sold or will be sold by July 1, 2010?

Hon. Harinder S. Takhar: What we really need right now is to make sure that our province becomes very competitive and we can get out of this global challenge that we are facing at this point in time. The single tax system that is being supported in this budget is actually a step in the right direction to make our province competitive as we move forward. It’s not only that we are advocating it; the federal government is supporting us in this. They are giving us some of the transition money so that we can help the consumers to do that. The other provinces have done it and they all have actually reaped the benefits of that. I really want to encourage the member on the other side to really see the benefits of the single sales tax as we move forward and make our province more competitive.