TORONTO – The Ontario government announced a $200 treat on Halloween for residents – a rebate that will be sent out in early 2025.
Finance Minister Peter Bethlenfalvy formally made the announcement when delivering his government’s fall economic statement.
“At a time when the cost of living remains stubbornly high, our government is taking action for the families and workers of this province with much-needed relief to their household budgets,” Bethlenfalvy said.
The rebate will go to about 15 million Ontarians and will cost the province about $3 billion.
“This $200 taxpayer rebate will give Ontario taxpayers, especially families with children, some much-deserved help so they can make ends meet,” said Premier Doug Ford.
The government said it was able to provide the rebate as the inflationary impact on provincial sales tax revenue has been higher-than expected. The rebate announcement comes days after the province announced another six month extension to a reduction in provincial gas taxes.
In the fall economic statement, the government announced the provincial deficit will have declined to $6.6 billion by the end of the 2024-25 fiscal year next March. It had been projected to be $9.8 billion when the budget was first released more than six months ago. However a $200 rebate for every adult and child in the province is not the tax relief that some experts were hoping for from the Ford government.
Ben Eisen with the Fraser Institute called the rebate an “ill-advised gimmick” adding that since taking office in 2018, the province has not made any progress in reducing taxes.
“The top personal income tax rate remains as high as it was when Premier Kathleen Wynne took office, at 53.53 per cent,” Eisen said. “The business income tax remains at the same level as when Ford took office.”
He added that Ford has not introduced any substantive tax relief or reform.
“Based on its record, you’d be hard pressed to find evidence the Ford government is committed to helping Ontarians keep more money in their pockets.”
The Income Security Advocacy Centre, which advocates for supports for low-income Ontarians including those receiving Ontario Works benefits, questioned why the new $200 rebate was not means-tested.
“A one-time $200 payment irrespective of wealth is a much less prudent use of the province’s money than targeted investment in the systems that inadvertently trap Ontarians into poverty,” the organization said.
The ISAC said that the $3 billion for the rebate would have gone further if OW rates were indexed to inflation, which would cost an estimated $336 million.
“A targeted policy decision like this could immediately and sustainably alleviate the condition of a group that experiences the highest rates of poverty in the country.”
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