Canada Day 2010: What Will Be Affected By the New HST Tax?
Thursday July 1 2010 is Canada Day But It is Also the Day Taxes Will Be Changed in Three Provinces
British Columbia will be affected by the HST tax as consumers will have to pay 12 per cent on services such as auto repairs and real estate fees and products such as newspapers, magazines, school supplies, snack foods, restaurant meals and alcoholic beverages.
In British Columbia gas will not be taxed but services such as haircuts and funeral services will see the new HST tax. The combined tax in BC will be 12 percent and will replace the GST and PST on some products and services.
In Ontario the HST will combine to equal 13 percent and perhaps one of the biggest products affected will be gasoline. Kevin Gaudet, the federal director of the Canadian Taxpayers Federation told CTV that the HST tax on gasoline in Ontario will generate about $1.6 billion for the Ontario government.
It is estimated that in Ontario about 17 percent of all purchases previously exempt from the tax will now be affected.
"The truth is, most people don't know exactly what is subject to the new tax and what isn't," said David Schlesinger, head of indirect tax at KPMG. "But it's the items that people spend on regularly where they're really going to see the difference."
In Nova Scotia they already have an HST but it will increase by two percent on some products and services up to 15 percent starting July 1. That is expected to generate over $200 million in money for the province.
Most Recommended Comment
St. Louis, Missouri, United States