Harper Sales Tax (hst) Is Here To Stay
Just as Canadians were beginning to feel a little more relaxed about the recession, the government slaps two of our largest provinces with additional taxes. Yes, the Harmonized Sales Tax, or Harper's Sales Tax as some are referring to it, has officially been introduced. Ontario and British Columbia residents have begun paying the HST on a number of services already. Basically anything that is to be used as of July 1 is susceptible to HST. If you 'buy now, use later', HST will be added on to your total bill now as well.
The HST is a combination of the five per cent federal goods and services tax with the provincial sales tax. This new tax introduction comes as the news of increasing mortgage rates as well as a rise in Ontario's electricity rates by ten per cent combined with a rise in municipal taxes. Canadians have met this new tax with concern as they fear services that were once PST exempt will not cost much more.
The HST is meant to benefit the provincial economy by reducing the costs for businesses which are suppose to pass the savings along to their customers, but consumers are the ones left feeling the pinch. According to the Conference Board of Canada, the consumer confidence index fell 7.8 per cent in April to 84.4, leaving it at the lowest it's been since December 2009.
Ontario residents can expect to enjoy a new housing rebate on part of the provincial HST paid by an individual to purchase a new constructed or substantially renovated house for their primary place of residence. This new housing rebate will be equal to 75% of the provincial HST paid, up to a maximum rebate of $24,000. It will be available for the same types of properties that currently qualify under the GST housing rebate.
It was not widely announced that Ontario residents would also be receiving a 'transition' cheque of up to $1,000 per family starting June 2010. They need to know that even though they will be paying more for services now, some of the savings will come back in lower income taxes and lower prices. Beginning in June, the Bank of Canada has announced that all Canadians should expect an interest rate increase as well, making average debt more expensive. If you are having trouble making ends meet now it may be the time to re-work your budget, or consider consolidating your debt to make the transition to paying the HST a little less painful.
The HST is a combination of the five per cent federal goods and services tax with the provincial sales tax. This new tax introduction comes as the news of increasing mortgage rates as well as a rise in Ontario's electricity rates by ten per cent combined with a rise in municipal taxes. Canadians have met this new tax with concern as they fear services that were once PST exempt will not cost much more.
The HST is meant to benefit the provincial economy by reducing the costs for businesses which are suppose to pass the savings along to their customers, but consumers are the ones left feeling the pinch. According to the Conference Board of Canada, the consumer confidence index fell 7.8 per cent in April to 84.4, leaving it at the lowest it's been since December 2009.
Ontario residents can expect to enjoy a new housing rebate on part of the provincial HST paid by an individual to purchase a new constructed or substantially renovated house for their primary place of residence. This new housing rebate will be equal to 75% of the provincial HST paid, up to a maximum rebate of $24,000. It will be available for the same types of properties that currently qualify under the GST housing rebate.
It was not widely announced that Ontario residents would also be receiving a 'transition' cheque of up to $1,000 per family starting June 2010. They need to know that even though they will be paying more for services now, some of the savings will come back in lower income taxes and lower prices. Beginning in June, the Bank of Canada has announced that all Canadians should expect an interest rate increase as well, making average debt more expensive. If you are having trouble making ends meet now it may be the time to re-work your budget, or consider consolidating your debt to make the transition to paying the HST a little less painful.
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