The Ontario government appeared today to back away from the idea of removing the provincial sales tax exemption for restaurant meals under $4 as the food-service industry launched its campaign against the so-called fat tax.
Critics claim putting the eight per cent sales tax on low-priced meals would amount to a $200-million cash-grab by the Liberals.
But Finance Minister Greg Sorbara said he's not counting on any increases in tax revenues to eliminate the deficit, projected at $5.6 billion this year.
"We are looking at other non-tax-based revenue mechanisms that would assist us in meeting our objective of bringing forward a balanced budget," Sorbara said heading into the weekly cabinet meeting.
"I have said absolutely nothing about whether or not we are considering or not considering" removing the provincial sales tax exemption from meals less than $4, he said.
"I'm neither moving towards it or backing away from it." Source.