H.S.T. Explained
With all this talk about H.S.T., it is often difficult to know how these proposed changes will affect you, the average British Columbian. The bottom line is at the end of the day, this new tax will end up costing you more money by making you pay 7% more tax on a wide range of goods and services.
Right now, there are many goods and services which are exempt from the 7% Provincial Sales Tax (P.S.T). Once H.S.T. is in place, that means that all those goods and services that were once exempt, will now cost 7% more. Can you afford this increase in taxes during a time of a damaging recession? Click here to see a breakdown of some of what will now cost you 7% more.
Who will benefit from H.S.T.? Big business. That is why groups such as the B.C. Business Council (see there 5-page document praising HST here – PDF format), the Canadian Manufacturers and Exporters and a host of other business groups support implementing H.S.T. This new tax will give $1.9 BILLION to big business. That’s $1.9 BILLION less for you, the taxpayer. You also cannot forget the Liberals will also benefit from this. Ottawa is giving B.C. $1.6 BILLION to “harmonize” the taxes. You would think there would some rules on how Gordon Campbell and his Liberals can spend that money. But there are no such rules, they can spend it as they please.
Here is a list of just a few of the goods and services which will cost you more beginning July 2010:
- Accounting
- Architecture
- Household renovations
- Home care
- Massage therapy
- Dry cleaning
- Repair services for appliances
- Haircuts
- Food
- Heating bills
- Movie and theatre tickets
- Housing
- Funerals
- Vitamins
- Bicycles
- Magazine and newspapers
- Safety equipment
- Airplane tickets
- and more…
Here is a link to the Ministry of Finance and their page titled “Harmonized Sales Tax – Creating Jobs, Lowering Prices“. It is interesting to read their take on H.S.T. and its impact on British Columbians.
