TORONTO: The Canadian Taxpayers Federation (CTF) today expressed disappointment over the announcement of a new electronics tax to take effect in Ontario. CTF Ontario Director, Kevin Gaudet, said, "this new tax will be a shock to the wallets of unsuspecting consumers when prices go up next Spring."

The Ontario government today approved Phase 1 of a new program for recycling waste electronic and electrical equipment. It is a four phase program with Phase 1 imposing a minimum $30 fee for a computer system and $10 for a TV. When passed along to consumers the taxes will cost over $100 million for Phase 1 alone.

The program includes no incentives to increase recycling which a rebate-return program would.

In imposing this new tax the government ignored submissions by small independent electronics recyclers who claim that this tax will kill their businesses.

Gaudet said, "The CTF recommended a refundable deposit that - like bottles and cans - provides a real incentive for consumers to recycle. This fails that test and will no doubt blossom into another expensive bureaucracy; in this case unaccountable and not-transparent."

Waste Diversion Ontario is required to provide a plan to the Minister of the Environment for Phase II of the program no later than one year from today. "Consumers haven't seen the end of this new tax scheme," concluded Gaudet.