Harmonized Sales Tax

Changes in Retail Sales Taxes in BC and PEI

Effective today, residents of Prince Edward Island will be subject to a Harmonized Sales Tax of 14% on most services and products whilst British Columbia Residents will be subject to a Goods and Services Tax of 5%, which will be replacing the Harmonized Sales Tax of 12% in BC.

In British Columbia there will be a decrease in taxes on books (audio, electronic, bound and printed), basic cable services, concert tickets, music lessons and movie tickets but a combined tax of 12% (5% GST + 7% PST) will remain on most products and services. Individually purchased magazines will be subject to less taxes in this province.

In Prince Edward Island there will be decreases in retail sales taxes on CDs, DVDs, Blu-Rays, MP3 players, DVD and Blu-Ray players, radios, stereos, televisions, movie tickets, basic cable subscriptions and individual magazine purchases. Audio Books and Books will still be subject to the GST at 5% in this province whilst music lessons will be exempt.

For additional information please consult the following documents :


HST in Quebec

Quebec residents will know if they will be subjected to a provincially collected Harmonized Sales Tax by the end of the month.

The federal government has already set aside $2.2 billion dollars to compensate the provincial government of Quebec and is still in negotiations with Quebec in regards to what will and will not be subject to this tax.

Books and baby cribs, for example, are not subject to the provincial sales tax in the province of Quebec. And consumers are concerned that because GST is charged on those items that these products may be subject to the combined 13% Harmonized Sales Tax.

Motion Tabled Against HST/GST on Books

A motion was filled by Irene Mathyssen, the Member of Parliament for London-Fanshawe, asking the Minister of Finance to “introduce legislation to eliminate the GST and the HST on all reading materials“.

This motion was seconded by another NDP member, Alex Atamanenko, Member of Parliament for BC Southern Interior.

Click here to contact your local Member of Parliament in regards to this issue.

BC Voters Asked To Keep Reduced HST

British Columbia residents are being asked to vote for the Harmonised Sales Tax during a referendum.

The BC provincial government is hoping that a promise to reduce to tax to 10% by 2014 will result in a vote for the unpopular 12% tax on goods and services in that province

The first 1% reduction would be scheduled for Canada Day, 2012, conditional of course on the re-election of the provincial Liberal Party into office. And transition cheques would also be issued to families and low to modest income seniors.

The ballots for this referendum will be mailed out on June 13th, to be counted on July 22nd. Click here for additional information.

The HST – A Canada Day Gift !

Ontario residents and non-residents traveling to Ontario will not be paying more taxes on the following :

  • CD, DVD, Blu-Ray Discs
  • TVs, Mp3 Players, DVD/Blu-Ray Players
  • Movie Tickets (reduction of 2%) / Cable Television
  • Computers, Hard Drives, Prepackaged Computer Software
  • Books, Audio Books & Retail Magazine Purchases
  • Music Lessons/Educational Services
  • Municipal Public Transit/GO Transit
  • Bridge, road, and ferry tolls
  • Products on which they paid both the GST and PST on prior to July 1st, 2010

But they will be paying more taxes on the following :

  • Internet Access Services in Ontario
  • Concert Tickets for events in Ontario
  • Alcohol purchases in Ontario
  • Gasoline/Diesel/Electricity/Natural Gas purchased in Ontario
  • Accommodation in Ontario (Hotels/Motels/Camping)
  • Airline, Bus and Rail Tickets/Taxi Fares in and from Ontario
  • Magazine Subscriptions (Ontario Residents Only)

In contrast British Columbia residents will be paying less in taxes to fuel up their cars and less on accommodation. But they’re still going to pay more for their utilities.

Isn’t this a FUN Canada Day gift ?!