The Ontario Government will introduce legislation on Monday to create a single 13% sales tax by merging province’s 8% sales tax with the 5% Goods & Services Tax.

The bill includes a series of cuts to income, small business and corporate taxes.

The bill also provides for tax rebate cheques of up to $1,000 for families to counterbalance the impact of harmonized sales tax.

Finance Minister Dwight Duncan said that the new bill would make businesses more competitive. In addition, it would help creating more jobs and rebuilding Ontario’s economy.

Speaking against the current pattern of tax, Mr. Duncan said, “Right now there's a hidden tax - businesses pay tax on tax on tax.”

On the other hand, opposition parties are criticizing the bill, saying it would hit consumers hard.

As per estimates made by the National Citizens Coalition, an average taxpayer will have to pay an additional $800 to $1,000 every year due to HST.