Premier Dalton McGuinty said in a statement that though a move to a harmonized sales tax might not be suitable for every province, it would make sense for Ontario.

McGuinty, while speaking at a Liberal fundraiser in Winnipeg on Friday, said his prediction that holdout provinces like Manitoba and Prince Edward Island would eventually embrace the harmonized sales tax, was wrong.

"It's a very difficult decision to make", McGuinty said, adding that "every province has to look to its own particular circumstances and priorities but it's the right thing for us to do in Ontario".

As previously reported, Ontario and British Columbia have already agreed to harmonize their taxes. The Federal Government, in order to ease the transition to a single tax, is pouring in billions of dollars.

Federal Finance Minister Jim Flaherty said about the HST, "Tax harmonization remains the most important thing provinces can do to improve their competitiveness".

But according to a report released in December, Manitoba Government refused the idea of harmonization, stating that "it would cost consumers too much".

Though a HST move, the province estimated, would go on to save the province's businesses $510 million a year, but on the other hand, it would cost consumers more than $400 million,.