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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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