Happy Birthday Canada!
And for Ontarians & British Columbians, Happy HST day!
Effective Thursday July 1 2010, the governments of Ontario and British Columbia implemented the single harmonized sales taxes (HST). The HST combines both the federal goods and services tax (GST) with their provincial sales taxes (PST). GST is 5%, while PST rates are 8% and 7% respectively.
Here are some of the changes listed below:
Clothing & Footwear:
– Dry cleaning service
Food and Beverages:
– Alcoholic Beverages (previously 5% GST + 10-12% PST)
Although sales tax on alcohol is decreasing, other alcohol fees and taxes are changing
– Cleaning Services
– Electricity and Heating (e.g., Natural Gas/Oil for Home)
– Internet Access
– Home service calls by Electrician, Plumber, Carpenter
– Landscaping, Lawn-Care and Private Snow Removal
Accommodation, Travel and Passenger Transportation Services:
– Hotel Rooms (previously 5% PST)
– Domestic Air, Rail and Bus Travel originating in Ontario
Around the House:
– Home renovations
– Magazines purchased by subscription
– Private Resale of Car (including Registration)
Ontario will maintain the PST on private transfers of used vehicles at a rate of 13 per cent.
– New Homes over $400,000 (and in the GTA of Ontario, and GVR of BC, most single detached homes are well over the $400k price tag).
– Real estate commissions
Health Products and Services:
– Massage therapy
Memberships, Entertainment and Sports Equipment:
– Golf green fees
– Gym and Athletic Membership Fees
– Ballet, Karate, Trampoline, Hockey, Soccer Lessons, etc.
– Tickets for Live Theatre with Less Than 3,200 Seats
Leases and Rentals:
– Hockey Rink and Hall Rental Fees
Professional and Personal Services:
– Fitness Trainer
– Hair Stylist/Barber
– Esthetician Services (e.g. Manicures, Pedicures, Facials)
– Funeral Services
– Legal Fees
– Cigarettes and Other Tobacco Purchases
– Nicotine Replacement Products
Ontario Government Services:
– Hunting and fishing licenses
For investments mutual funds, hedge funds, segregated funds, exchange-traded funds (ETFs/Index Funds), professionally managed portfolios, wrap products, and charitable trusts, are now subject to the HST.
Comprehensive official list (Ontario Ministry of Revenue):
http://www.rev.gov.on.ca/en/taxchange/taxable.html (second half of page)
We can see that there is a significant amount of additional tax on things that really matter. These are items that are part of your cost of living, and therefore the cost of living has just gone up. The government claims that “most products we buy will see no new tax” and that there is “no new tax for 83 per cent of products and services“. This may be true, because we are already taxed to death on pretty much everything, and now they’ve just expanded on that.
As I’ve mentioned many times before, expect more increases in taxes, fees, dues, etc. as the world pays down its government deficits from public overspending, increases to social benefits & entitlements, and taxpayer bailouts of those who were financially irresponsible (both consumers & businesses), and to compensate for the misdeeds caused by people who defrauded others.
Thanks & Happy Investing! — The Investment Blogger © 2010