The Canadian Revenues Agency has released a memorandum detailing initiatives to encourage tourism and foreign conventions in Canada. The news comes amidst a wake of backlash from critics of the proposed Harmonized Sales Tax (HST).

The document outlines the various criteria that must be met in order for non-Canadian residents to be compensated for the GST/HST spent while working or vacationing here. These amendments are sure to bring a sigh of relief from communities that are heavily focused on tourism. With packages such as ski, golf and all inclusive resort stays now eligible for rebates, Canada’s tourist hot-spots wont be scaring off prospective vacationers with high taxes. This rings especially true for British Columbia and Ontario, as both provinces are set to implement HST in July.

While this is good news for businesses and the economy as a whole, consumers are likely to feel that they have been given a raw deal once again, because come summer they’ll have a lot more to cry about than ice-cream falling on shoes, as the cost of many items will now include a 7% (BC) and 8%(ONT) tax increase.

To read the report from CRA or to find out more on the HST please follow the links below.

http://www.cra-arc.gc.ca/E/pub/gm/27-3/27-3-e.pdf
www.hstincanada.com