BC’s new 12% harmonized sales tax a hidden tax hike
The British Columbia government’s plan to create a 12% harmonized sales tax (HST) by July 01, 2010, was announced in a press release today. The tagline read “Harmonized sales tax to boost investment; job creation,” although VibrantVictoria.ca’s discussion forum members are wondering what that means for the average consumer. While the government claims $2 billion will be saved annually through the HST, the cost to consumers at establishments such as restaurants is set to go up from the 5% GST to 12% HST. Discussion forum member “Bob Fugger” writes, “…most everything that is not subject to PST (versus PST exempt, which is slightly different) will be subject to 12% HST. This will include things like restaurant meals, baked goods, gym memberships. What a great hidden tax hike.”
Questions remain for taxation on items such as liquor (currently at 10% SST, a special liquor tax) or hotels (currently at 8%). It is unclear whether the latter will be taxed at their special taxation rate in addition to the 12% HST, or if the HST will include different tiers of taxation. Another question, raised by “spanky123,” is whether or not businesses will be allowed to keep $1,200 of PST revenues collected throughout the year.
Follow the VibrantVictoria.ca discussion on the new BC harmonized sales tax here.
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Responses to this Headline or Article
The five most recent replies to VibrantVictoria.ca's discussion forum's Harmonized Sales Tax (HST) discussion thread, the most relevant thread to the above headline or article:
Bingo
Dec 06, 2011 at 4:14 pmQuote: Why did I think it won't be until 2013? It was supposed to be 12-18 months, but I suspect 18 months is more like it.
It will become a provincial election issue in 2013.
rjag
Dec 06, 2011 at 5:02 pmYup and if the NDP win they will reap what they sowed when theres no more HST!
God help us all
Nparker
Feb 17, 2012 at 11:11 amQuote: The impact on new housing of the HST has been to lower the costs, the return of the PST will increase the costs...
Please explain as I have not seen any significant reduction in the costs of new housing (that can't be explained by a softened real estate market), especially considering that contractors have to charge 7% more for labour than under the PST/GST program. I simply don't believe any cost savings of the HST have been passed on to the consumer at the purchasing level.
Bernard
Feb 17, 2012 at 12:53 pmQuote: Please explain as I have not seen any significant reduction in the costs of new housing (that can't be explained by a softened real estate market), especially considering that contractors have to charge 7% more for labour than under the PST/GST program. I simply don't believe any cost savings of the HST have been passed on to the consumer at the purchasing level.
The cost of materials is lower and BC has on top of that offered a rebate of $26,500 on houses costing less than $525,000
With the return of the PST, costs for contractors will rise.
Nparker
Feb 17, 2012 at 2:07 pmQuote: With the return of the PST, costs for contractors will rise.
More than the 7% reduction in the cost of labour?
