Ontarians will be celebrating Canada Day by having the privilege to paying more tax. Previously, there was a long list of items upon which no PST was charged, with the implementation of the HST (Harmonized Sales Tax), some of these items will be taxed at 13%.
Sales Tax: a Regressive Tax on the Poor
Lower-income earners must spend a larger part of their budget on basic goods and services. Therefore, sales tax impacts those who can’t afford it the most. People living in poverty – including those needing social or disability assistance, seniors and the working poor – will bear the highest cost of this new tax policy. From HERE
Items with the New added Tax Grab
Hardest hit sectors in my view will be: print media, home repair, heat & electricity, Canadian tourism , transportation, private vehicle resale, and Real Estate Sales. See a list HERE
Prepay to avid the Tax Grab
You will not be charged HST if you pay before July 1, 2010 for:
- Magazine subscriptions
- Prepaid funerals if the contract is entered into in writing before July 1, 2010
- Passenger transportation services if the continuous journey begins before July 2010
- Freight transportation services if the continuous freight movement begins before July 2010
- Passenger transportation passes if the pass period begins before July 2010 and ends before August 2010
Resources
What's Taxable Under the HST and What's Not?
Helping Consumers Transition to the HST
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