TORONTO - A review of Ontario's controversial health tax will go ahead even though the $2.6-billion levy is here to stay, Premier Dalton McGuinty said Wednesday as he ruled out using next week's budget to override the government's own legislation.

As critics blasted the Liberals for breaking another promise to Ontario taxpayers by turning the promised review into a sham, McGuinty said he's made it clear the $2.6 billion generated every year by the much-maligned tax is needed to fund health care.

The review is required by the law brought in by the Liberals after their election in 2003, McGuinty said.

"We're mandated by law to review that health tax and we will do that,'' McGuinty said before a cabinet meeting Wednesday. "I think the outcome is pretty predictable.''

Critics are calling on the Liberals to get rid of the health tax, which the party imposed in 2004 after promising not to raise taxes. The Liberals argued the tax was necessary to counter a $5.6-billion deficit they inherited from the previous Conservative government.

At the time, the Liberals promised to review the health tax after five years.

Since then, McGuinty has called the review "redundant'' because he refuses to consider repealing the tax, which costs every eligible taxpayer in the province up to $900 a year. A few months ago, McGuinty mused about using the provincial budget to override the legislated review, but he ruled that out Wednesday.

"We're going to respect the law,'' McGuinty said. "We're going to hold the exercise.''

That's left critics wondering what the review will actually consider.

Opposition Leader Bob Runciman said when the tax was introduced, people expected the review would seriously look at phasing out the tax rather than just going through a "phoney exercise.'' Now, he said it's a "fait accompli.''

"It's a joke,'' Runciman said. "It's a laugher.''

The government is now posting surpluses that are almost the same amount the province collects from the health tax, but Conservatives say health care hasn't noticeably improved.

Kevin Gaudet, Ontario director of the Canadian Taxpayers Federation, said it's "absolute garbage'' that the Liberals can't afford to even consider cutting the health tax. The Liberals just want the extra cash to feed McGuinty's "addiction to spending,'' he said.

Instead of taking an objective look at the necessity of the tax, Gaudet said the Liberals are wasting even more tax dollars by going through the useless motions of a review.

"It's a pretty sad state,'' he said. "It's unfortunate for taxpayers. Not only are we saddled with the tax, we're saddled with the cost reviewing a tax that we know (McGuinty) doesn't intend to remove.''

NDP Leader Howard Hampton said the Liberals might look at the review as a chance to sell the tax to the public but New Democrats will use the process to push for change.

The health tax is one of the province's "most regressive'' taxes which hits low-income earners harder than Ontario's wealthiest, he said. Anyone who earns under $45,000 a year shouldn't be paying the tax, Hampton said.