HST number crunching
Here are some real world examples of how the change to H.S.T. will affect the average British Columbian. Have other real world examples? Send them to us here so we can post them on our website!
The new 12 per cent Harmonized Sales Tax (HST) planned to start next July will have an impact on typical expenses that families incur.
These include:
RESTAURANTS
Currently, only GST (five per cent) is paid on the food portion of a bill, while both GST and PST (seven per cent) are paid on alcohol. Under the HST, the entire bill will be subject to 12 per cent tax.
ENTERTAINMENT
Admission to movie theatres, concerts and live theatre will increase by seven per cent. And if you want popcorn, candy and a soft drink, you’ll also dole out the additional tax next year.
SCHOOL SUPPLIES
Currently subject to only the GST, these items will incur the full 12 per cent tax once the HST goes into effect. The only exception to this is books, which will remain at only five per cent tax.
FOOD
Under the current tax system, all food products are exempt from PST, while GST is paid on some items such as many snack foods, candies and confectionery items, as well as carbonated beverages. These items will now be subject to the full HST. This includes the coffee that so many enjoy from their favourite shop.
Under the HST, only “basic groceries” do not have any tax applied at all. That includes fresh meat, most milk products, bread, eggs, breakfast cereals, and fruits and vegetables.
SERVICES
Currently subject to only the GST are services such as dry cleaning, personal services (for example, haircutting), and repair and maintenance to household appliances. Prepare to pay another seven per cent on all of this under the HST.
HOUSE BILLS
Another seven per cent will be added to basic cable, residential phone, hydro and gas bills.
TRAVEL
Airline fares within Canada are currently charged only the GST, but another seven per cent will be added when the HST goes into effect. Also taxed the full HST are tourism services such as booking fees and tours.
HST EXEMPTIONS
“Point of sale rebates” will be issued on the provincial portion (seven per cent) of the HST on the following items: books; diapers; car seats and booster seats; children’s clothing and shoes; feminine hygiene products; and gasoline, diesel fuel, marine diesel fuel and aviation fuel, including bio-fuel components for motor vehicles, boats and aircraft.
REAL ESTATE
There will be no tax increase for new housing up to $400,000. Homes valued at over $400,000 will be eligible for a partial rebate equal to five per cent of the purchase price up to a maximum of $20,000.
[with info from Abby News]
