The HST Now in Effect
The harmonized sales tax is now in effect in British Columbia and Ontario, immediately increasing the prices for select goods and services. There is still much confusion over exactly what impact the HST will have. For example, in a recent survey of BC residents, only one-third correctly identified the exemption for basic groceries, about the same number are aware that residential rent, children’s items such as clothing, footwear and diapers and prescription drugs will be exempt from HST.
Very Brief Overview
The HST is a combination of the PST and the federal GST. It will be collected and redistributed to the provinces by the federal government. The HST varies in its rate and exemptions between the provinces, it’s set to 13% in Ontario and 12% in British Columbia. Learn more about Ontario HST exemptions and BC HST exemptions.
Its purpose
To stimulate the economy by lowering the tax on raw materials and production, in an effort to increase investment.
Opponents
Opponents often look at the short term effects, arguing that consumers face an immediate increase in the cost of many formerly exempt goods and services, including haircuts, bicycles, restaurant meals and health club memberships. There is also a concern that the HST will have long-term effects on service-based industries as a result of a decrease in consumer spending and because business will not adjust their prices to included the added savings (many in an effort to offset the decrease in consumption).
Proponents
Proponents agree that prices will increase in the short term, but argue the HST will ultimately lead to an increase in investment, which in turn will mean more jobs and a stronger provincial economy in the future. The HST will stimulate the economy and make provinces more competitive by eliminating the retail sales tax currently hidden in the costs of goods purchased by businesses. Top economists around Canada support the HST arguing that sales tax harmonization is proven to stimulate investment and will to long-term lead to economic growth.
(1 votes, average: 5.00 out of 5)
Loading ...
This is nothing but a tax grab. The supposed slight increase will cause more cross border shopping and cash sales. This goverment (BC) kept the money given by the federal goverment for itself. We should have booted the drunk out the last election. He will get his pention and probably live some where else. May he die a poor man like the rest of us (thanks to him).
There is only one good think about this HST (otherwise known as the biggest legal scam ever!). there will be more people on the street beacase we all know that the best way to get money into the economy is to tax, tax and more tax. “If you can’t get the people to spend to save our economy, let just take it from them”. Way to go government another amazing job.
Keep this up i’m sure I may have to leave my patriat flag at home and start carring the anarchist flag. Down with the HST. IdioTs
I want my Transition Cheques like Ontario gets……BC should get the same deal with transition cheques like Ontario
I want Gordon Cambell to come live and walk in my boots for a month and then see how he feels. No that may not work as he is a selfish, lying drunk with no emotions or feelings for anyone but himself and his cronies.
HST has no value.
When consumers pay for goods more, consumers simply decrease or remove services which hurt businesses.
Businesses will be in an uproar and this will actually have the reverse effect. Less jobs
Governments may think that they can get more money, but in the end they will get less.
I’m a little sick right now. This year alone, I’ve paid $500 HST to buy my car out from the lease, then I just paid $150 HST on a puppy for my kids and that’s not including the HST on the astronomical electric bills or anything else…! I’m a single parent, how does this benefit me?
As a new single mother,(single because I can’t afford to live in a home with my husband!) I find the extra costs really add up and find myself avoiding situations where I have to spend money. No more movies, family outings, I try to avoid shopping with my children at all costs. It’s not a few dollars here or there but hundreds a month when you add it all up with utility bills, food etc. We no longer can go out for entertainment, we have lost our jobs do to people not spending like before. We have found ourself homeless as we can’t pay our rent now. YES the HST affects families and children. It dosen’t affect the wealthy but the low income, where every dollar counts!
Leave your response!
Categories
Network with us
Most Commented
Most Viewed
Internet Marketing and Web Strategy by Sticky Consulting. Web Development by Isaac Oslund.