Tax change could kill community paper

Tax change could kill community paper

By Thien Huynh

There’s a fight every Thursday at Navid Fatehi’s house. As he settles down to read the Iran Javan, a weekly community paper, his sister snatches it away to search job postings. His mother will settle the dispute by taking the paper to check health tips.

“I’m still learning English. This is the only way for news,” says Fatehi, a carpenter who recently sponsored his family to come to Toronto.

Too bad a new tax ruling could send many community papers into bankruptcy and leave immigrants such as Fatehi feeling isolated. Community newspapers were exempt from paying PST on supplies such as printing. But in its attempts to tighten up tax laws, the Ontario government has defined many local newspapers as magazines, which are taxable publications. That basically increases their costs by eight per cent.

Babak Reihanypour, publisher of the Iran Javan, was shocked when he received a bill for $250,000 in back taxes. He has 12 months to pay it off and forks over $2,000 a month in interest.

“This ruling impacts publications that serve Arab, Chinese, Russian, South Asian and 50 other communities, as well as some English-language papers,” says Reihanypour.

“Ethnic papers are essential in helping newcomers understand OHIP, TTC routes, the police, day care — anything that helps them integrate into Canada. But I might have to shut down.”

Some might argue that fewer ethnic newspapers means that immigrants would have to learn English, rather than contently nestle in the safe haven of their communities. There are people who have immigrated to Canada years ago and never felt the need to learn English.

“I believe that everyone should have access to the news. The Ontario finance minister should axe the tax and prove that this province is open to people whose first language is neither English nor French.
Greg Sorbara wouldn’t do it. The question now is, does Dwight Duncan have what it takes?” says Michael Prue, MPP and NDP finance critic.

It’ll be interesting to see how many ethnic papers are silenced in the next year if the tax holds.