Ontario Consumers Hit With "Eco Fees"

On July 1, 2010, new “Eco Fees” hit Ontario consumers.  The levies by the McGuinty Liberal government have been placed on thousands of household necessities, ranging from detergents to pharmaceuticals, and safety products like fire extinguishers.   The levies have been part of a phased in program that came into effect two years ago, and is overseen by Stewardship Ontario.

Under the program, manufacturers pay the province a levy intended for recycling their products.  However, most levies are always passed onto the consumer resulting in additional costs of a few cents to a few dollars (per product).  It is also questionable whether or not the  money collected will actually be used for its “advertised” purpose, or whether it will be used effectively or efficiently.  Many times government taxes are misused, wasted, and spent recklessly.
Common products include:
– aerosol containers.
– rechargeable batteries.
– corrosives and irritants (bleaches, drain cleaners, detergents).
– toxic & flammable products.
– syringes & needles.
– pharmaceuticals (prescription medicine, over-the-counter drugs,  and natural health products).
– fluorescent bulbs.
– fire extinguishers.

Again, the number one method the government uses to make money is taxes (whether in the form of service or usage fees, other charges, or officially named taxes).  As we’ve been discussing here at the Investment Blog for a long time now, this is only the beginning.  Governments need to pay for their massive deficits and spending. And when the government needs to pay for something, they turn to their number one revenue source, your bank account!

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Related Articles:
Investment & Economic Outlook 2010

Thanks & Happy Investing! — The Investment Blogger © 2010

Author: The Investment Blogger

I’m a private investor, who developed the “function-centric investing” paradigm. I am an investor who blogs a little here and there, rather than a blogger who invests a little here and there. I'm passionate about investing and sharing investment knowledge!

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5 Comments

  1. I guess Mr. McGuinty thinks that we all fools. Did he think that we would not find out about these so called fees “taxes”. I guess he wants Ontarians to be the most taxed people in all of Canada or maybe the world. I’m really tired of this tax grab and all the other hidden taxes that we keep having to pay all the time.

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  2. Eco fees for dish detergent and Javex?
    Are they insane?

    If the government is going to punish us for having faithfully recycled for years, let’s just start dumping our recycling materials in with the garbage.

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  3. If the price of cement is going to double with the price of cement, won’t that create inflation in the housing market?

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  4. Sorry I meant to say that with an eco fee of .13/kg on cement, won’t this increase the price of construction.

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  5. As we can see, this type of thing will both directly and indirectly affect us. Businesses that provide services will increase their prices to offset the increases to their costs. The resulting effect is an increase in the cost of living, contributing to a high inflationary environment. Unfortunately, new taxes and fees within the last 2 years are likely only the beginning. When the economy really begins to pick up, they will be able to implement more without killing off the economic recovery. Make preparations for such events today.

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