Affected Items
- In Ontario the HST will increase tax on gasoline and diesel from 5% to 13%.
- In British Columbia, the HST will apply on motor fuel and diesel but the 7% provincial portion will be refunded at the point of sale, meaning the effective tax will remain at 5%, the rate of the GST.
- PST was only applicable to goods, whereas HST is generally applicable to both goods and services. Service items from haircuts to carpet cleaning that previously include only the five per cent GST saw an increase in costs. However, in Ontario the PST portion of the HST will be exempt on newspapers and fast food items not exceeding $4 per purchase.
- In Ontario, a rebate compensating for the HST will leave the first $400,000 of a new home purchase unaffected whereas the portion of a home above $400,000 will be charged the full HST. However, buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home.
- For Ontarians HST will not be charged on the resale of an existing home, however renovations are taxable.
- Ontarians will pay more for management and other fees associated with investment funds, such at: mutual funds, segregated funds and ETFs.
Read more about this topic: Harmonized Sales Tax
Famous quotes containing the words affected and/or items:
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