Oh Canada! Our true north strong and free! Wait… free?
Well not for residents of Ontario and British Columbia. Everyone knows birthday parties usually result in thinner wallets, but no Canada Day has ever been so expensive for Canadian families as this, our 143rd. In Ontario and B.C., the Harmonized Sales Tax begins today. Provincial governments say it will lead to more jobs and savings for both manufacturers and consumers, which will ultimately strengthen their respective economies. But many British Columbians and the NDP have been pretty vocal about their opposition to the new tax, which encompasses both the Goods and Services Tax (GST) and Provincial Sales Tax (PST) into a single sales tax that goes to the federal government, Ontario residents have received the news relatively quietly. Critics say a new tax making some essential goods more expensive for those with the lowest incomes is not what a society that just faced a huge economic crisis needs.
Transitions to ease the adjustment began in May, but it starts full force on July 1st. So whether you’re against the HST or not, it’s going to start affecting the purchases of every B.C. and Ontario family, both ordinary and offbeat.
If you’re in Ontario, put that little black dress back on it’s hanger and grab that smock for your toddler’s lunchtime – the tax for dry cleaning services goes from 5% to 13%. Same goes for house cleaning, landscaping, home renovations and home repair calls. Unplug the computer to avoid higher Internet costs (electricity and heating too), but keep that TV on so your kids have something to do when their karate or ballet lessons and gym memberships become too expensive. And you might want to rethink your family trip – camp sites, gas prices, hotel rooms, and domestic travel originating in Ontario will all see an 8% tax increase. B.C. children will be sad to know they’ll have to fork over more coins for snack foods like chips and pop, and families will spend a little more at restaurants and throw fewer parties with hired planners. But, hey, alcohol will be cheaper! Parking costs will rise, as will newspaper and magazine subscriptions, EnergyStar Windows, and smoke alarms. And buying a house will get even more expensive in both provinces with the HST. For a complete list of goods that will be affected in Ontario click here, and in B.C. click here.
New Brunswick, Newfoundland and Labrador, and Nova Scotia already instated the HST in 1997, and a report says consumer good prices fell in each province under the HST. So maybe it won’t be so bad? The Ontario government even says 93% of Ontario taxpayers will get a personal income tax cut on January 1, 2010, and Ontario families and individuals with up to $80,000 of income will get an average personal income tax cut of 10%. And rebate cheques are being given out in both provinces to ease the initial added financial strain.
So maybe instead of stinging on the birthday gift for our home and native land like we usually do, maybe the extra round of beers or that last sparkler will be on the HST this year.
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Great post thanks for the info.
More info can be found at: http://www.ontario.ca/taxchange