The Harmonized Sales Tax (HST) is finally here, and in British Columbia. But, there are some extreme differences between Ontario’s HST and British Columbia’s HST. What’s going up in price is pretty much determined by which province you currently reside in. We’ve covered HST and home buying, but many other costs from home maintenance to heating will also feel the HST pinch.
Previously, we had to pay 13 per cent taxes on most retail purchases, a combination of 5 per cent GST and 8 per cent PST. Now, HST is replacing PST and GST with a new 13 per cent tax. It’s the same amount, but now it’ll be applied to things that only previously had the 5 per cent GST applied, like landscaping, snow removal and gasoline.
One of the most noticeable new charges for people living in Ontario is the 13 per cent HST tacked onto gasoline charges when they fill up their cars. They’ll also feel it when they open their energy bills, because home heating oil, hydro and natural gas will also be applicable to HST. British Columbia won’t be seeing HST added to any of those, but will have a separate carbon tax added to energy.
Both provinces’ real estate HST changes are essentially the same, with HST being added to new homes of certain prices, but only Ontario homebuyers will receive HST rebates of up to $24,000 on their purchases.
HST in Ontario is now added to legal services, and British Columbia will be adding HST to snacks, over the counter medication and even plants and trees that produce food.
The five per cent GST will remain in effect on some things they were previously subject to such as food, children’s clothes and shoes under $30. Enjoy the new tax!
