The Ontario government – in a bid to provide relief from U.S. tariffs – has unveiled a tax deferral program that will provide businesses with a six-month break from certain provincial taxes. Mining taxes are among the 10 business-oriented tax program that will be receiving relief. In total, the province will provide up to $11 B in tariff relief to workers and businesses.
Priya Tandon, president of the Ontario Mining Association, has responded to the move in positive terms. She said the following: "The Ontario Mining Association welcomes the government’s tax deferral program as an important step in easing the burden on businesses posed by US trade policy.”
However, she added: “While this initiative offers temporary respite, we urge long term action that will allow Ontario to assert itself as a global leader. To fully leverage the strategic role of Ontario’s mining industry in our economy and in feeding global markets, comprehensive strategies to enhance domestic mineral production and processing are urgently needed.”
Tandon also called for a prioritization of the mining sector in Ontario. She continued, “Every ministry must treat mining-related issues—ranging from permitting and infrastructure to energy pricing—as a strategic priority. By embracing this approach, Ontario can demonstrate its commitment to investors and communities, signalling a strong vision for securing our economic future."
Ontario mining tax is imposed on profits from the extraction of mineral substances raised and sold by operators of Ontario mines. The tax rate on taxable profit subject to mining tax is: 10 per cent for non-remote mines, and five per cent for remote mines. The government applies the tax on an operator's annual profit more than a $500,000 annual deduction, which needs to be shared by associated corporations. The deduction may be reduced on a pro-rata basis where the operator has a short tax year, the operator has a part interest in the mine, or where the mine is out of production for 60 or more consecutive days.
The deferral provides about CDN$9B in cash flow to support employment. It is retroactive from April 1, 2025, to October 1, 2025. Observers see the deferral to help businesses navigate this new challenging economic environment.
In explaining the move, Ontario Premier Doug Ford stated: “We can’t control President Trump, but we are in full control of the kind of future we build for ourselves. The best way to protect Ontario is to build the most competitive economy in the G7, breaking down internal trade barriers and diversifying our trade so we can build a more resilient, prosperous and secure province.”
Peter Bethlenfalvy, Ontario’s minister of finance, added: “We are ready to protect Ontario’s workers, businesses and families from the economic uncertainty of U.S.-imposed tariffs. Today’s measures help Ontario to weather the storm while continuing to build on our plan for ongoing prosperity.”
Through the Workplace Safety and Insurance Board (WSIB), the Ontario government will also be issuing a further $2 billion rebate for safe employers to support businesses and help keep workers on the job, in addition to the previous $2 billion rebate distributed in March.
David Piccini, the provincial minister of labour, immigration, and training and skills development, added: “In the last year, the WSIB provided historic, 50-year-low premiums to over 320,000 employers and surplus rebates to over 280,000 safe employers. Ontario is looking to provide further relief to employers through an additional distribution that will help them keep workers on the jobs, whatever comes our way from President Trump.”
More information on the Ontario Mining Association is posted at www.Oma.on.ca
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