Ontario’s 2002 provincial budget contains the first tax hike in seven years, and delays promised personal and corporate income tax cuts.

As expected, the big tax hike is on cigarettes – the cost of a carton goes up by $5 as of midnight.

A variety of tax cuts that were to take effect in early 2003 have been delayed by a year. They include a planned cut in personal income taxes, corporate taxes, and the education portion of property taxes.

The personal tax cut delay will save an estimated $218 million. The corporate tax cut delay would save only $11 million.

One of the tax cuts that will not be delayed is the small business corporate tax rate cut. As scheduled, that will fall from the current 6 per cent to 5.5 per cent next January.

Overall spending rises by $2 billion to $65.5 billion. Health care spending rises $1.7 billion alone – to $25.5 billion.