Money 25
As of July 1st the new Harmonized Sales Tax was introduced in both British Columbia and Ontario. This new tax combines the Provincial Sales Tax (PST) and the Goods and Service Tax (GST) into one single tax. This brings these two provinces in line with New Brunswick, Nova Scotia and Newfoundland and Labrador who all adopted the HST in 1997. In B.C. the HST is 12% (5% GST plus 7% PST) and in Ontario it is 13% (5% GST and 8% PST).
So what does this mean for the residents of British Columbia and Ontario?
In fact it means different things for each province as each one has decided to adopt slightly different rules. Depending on your lifestyle it will impact people in different ways. Many things previously attracted both the PST and GST and these will not change, so prices will remain the same. Likewise there are things that were exempt from GST and PST and again these will not change. Unfortunately there are many goods and particularly services that previously only had GST applied, but will now come under the HST rules and so in British Columbia these prices have increased by 7% and in Ontario by 8%. There are too many things to list individually, but we will give you an overview of some of the most common products and services and how the HST will impact in each province.
Product or Service
Household Furniture & Appliances
Books inc Audio Books Magazines (retail) Magazines (subscription) Adult Clothing & Footwear
Ontario before July 1, 2010
5% GST
Ontario after July 1, 2010
5% GST + 8% PST 13% HST - no change
5% - no change
5% GST + 8% PST 13% HST - no change
5% GST
13% HST - increase of 8%
5% GST + 8% PST 13% HST - no change
Children's Clothing & Footwear 5% GST Dry Cleaning
5% GST
Basic Groceries (Dairy, Meat, Vegetables, Canned Foods)
Snack Foods (Chips, Pop) Restaurant Meals
Qualifying Prepared Foods & Beverages Under $4.00
Cell Phone Services
Municipal Water Home Insurance
No PST or GST 5% - no change
13% HST - increase of 8%
5% GST + 8% PST 13% HST - no change
5% GST + 8% PST 13% HST- no change
5% GST 5% - no change
5% GST + 8% PST 13% HST- no change
No PST or GST 8% PST
British Columbia before July 1, 2010
5% GST
British Columbia after July 1, 2010
5% GST + 7% PST 12% HST - no change
5% - no change
5% GST + 7% PST 12% HST - no change
5% GST
12% HST - increase of 7%
5% GST + 7% PST 12% HST - no change
5% GST 5% GST
No HST - no change No PST or GST 5% GST 5% GST 5% GST 5% - no change
12% HST - increase of 7%
No HST - no change
12% HST - increase of 7%
12% HST- increase of 7%
12% HST - increase of 7%
5% GST + 7% PST 12% HST- no change
No HST - no change No PST or GST 8% - no change
No PST or GST
No HST - no change No HST - no change
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