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ce yourself. British Columbia and Ontario now have the much-anticipated HST implemented on July 1, Canada's birthday. The harmonized sales tax will finally go into effect eliminating the GST and provincial sales tax, combining them both to become the HST.
In British Columbia, the HST will be 12 per cent as the provincial sales tax is currently 7 per cent but in Ontario [link widoczny dla zalogowanych], the HST combo will total 13 per cent, adding the 8 per cent provincial sales tax together with the 5 per cent GST. This will bring Canada's HST province total to 5, as Newfoundland, Nova Scotia and New Brunswick are already members.
The HST will affect all companies doing business in these provinces as well as all residents. The new tax will be applied to almost everything with a few exceptions. Itemas such as children's shoes and clothes, diapers, basic groceries and feminine hygiene products will all remain exempt.
The HST sting will be felt in different places. In Ontario, the cost of electricity and heat for your home will increase whereas, B.C. has implanted a consumer rebate for these fuels. Service providers such as contractors [link widoczny dla zalogowanych], hairstylists, landscapers, lawyers, electricians, accountants, plumbers and carpenters will now have to charge HST.
Also included in the service list are taxis. Taxis and domestic bus, air or rail travel will warrant HST fees. Oddly enough, there will now be a 7 per cent increase in the cost of bicycles in British Columbia. The pinch has not left out the pumps. Although B.C. has left their motor fuels exempt from the HST, the cost of diesel and gas will be going up in Ontario. Even though there is already a provincial tax built into the cost of gas, the HST will be adding around another $0.08 cents for every litre you pump in your tank.
Of course hotels will charge HST but condo fees will remain exempt. One can probably expect an eventual increase, however, as the cost of services and maintenance goes up. The most hard hit will be homebuyers. Even though both provinces are offering rebates on the HST portion of buying a home, the tax will still be added to the final cost of your new home. If you're buying a used home, resales are eliminated from the tax collector. Due to the fact a real estate agent provides a service, expect to pay HST along with their fee.
Even though the government has promised consumers rebates [link widoczny dla zalogowanych], these increases will make a dent in many wallets. Smart spending might be the order of the day for lower income families so that they may take the time to adjust to the new tax.