Ontario announces new support for business amid tighter COVID-19 restrictions

Ontario announced it is introducing new support for businesses amid tighter COVID-19 restrictions.

The 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 in a statement. “We recognize that these necessary capacity limits to reduce the transmission of the virus will impact businesses, and that’s why we are introducing these new supports, which will put money directly into the hands of businesses and free up their cash flows during this critical time.”

With the Ontario Business Costs Program, the province says eligible businesses will receive rebate payments equivalent to 50 per cent of the property tax and energy costs they get while under current capacity limits. 

Online applications for the Ontario Business Costs Rebate Program opens January 2022. 

The province says it is also providing additional support to help improve cash flows for businesses. It will provide a six-month interest-and penalty-free period to make payments for most provincially administered taxes. The six-month period will begin January 1, 2022 and end July 1, 2022. 

Ontario says the measure provides up to $7.5 billion in relief to help around 80,000 businesses in the province.

The province says the taxes that may be delayed by six months under the new program include:

•  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

Last week, Ontario cut capacity limits for most indoor settings to 50 per cent, including restaurants and bars, personal care services, retailers, and shopping malls. This comes amid a rise in the COVID-19 Omicron variant.