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did you know? facts about the hst There are many things on which consumers paid no PST or GST before the HST was implemented on July Ist this year - things like basic groceries, prescription drugs and municipal public transit. According to government sources, this won’t change under the HST - you'll still pay no sales tax. And since we already paid 13 per cent tax (PST + GST) on many things like cable, electronics, new cars and adult clothing - we won't notice any changes on these items. We will continue to pay 13 per cent tax, only now called the HST. The new tax will now be collected by the federal govern- ment instead of by two different governments. the sin of it all go down. Okay - if you're a smoker or chewer of tobacco, get ready for the ‘cigs’ to increase in price. Yes, the HST will now be added to cigarettes and other tobacco products including nicotine replacement products. Where you used to pay only the 5 per cent GST, these products will now be charged the full 13 per cent HST. Tax on alcoholic beverages was formerly subject to the 5 per cent GST and either the Ontario PST at 12 or 10 per cent depending on where purchased. With the HST, the combined rate will be reduced to 13%. However, the provincial government has decided to increase alcohol fees, levies and charges to maintain their current level of revenue. So, while you will not see the price of alcohol go up - you will not see the cost coffee, snacks, haircuts Before July 1, both taxes (PST and GST) applied to certain snack foods and prepared foods. That changes little with the new HST. But surprisingly, your morning coffee, fast food or a newspaper got a last minute reprieve when the government abandonded plans to put the HST on these products. This applies to items under $4. Most services such as haircuts, accounting, golf green fees, fitness memberships, legal and other professional fees which were not subject to the 8 per cent PST, pre-july 2010, are now subject to the full 13 per cent HST. Similarly, most extracurricular activities, dry cleaning, laundry service, computer assistance and car repairs will now be charged the HST. a la pleasures get the tax While there are many, many things that will not be affected adversely by the implementation of the HST, it appears as if the things we enjoy and use the most - like travel, fuel and accommodation will be affected. Basically they are going to tax “the pleasures of life”. So under the HST you can expect to pay more tax for hotel rooms, taxis and campsites. Also domestic air, rail and bus travel originating in Ontario will see an 8 per cent jump in tax. And while domestic travel gets the hit, if you are planning a trip originating in Ontario to out- side Canada or the USA there is no HST added. (Seems they are encouraging us to travel abroad). Of course gasoline and diesel fuel will now be increased by 8 per cent, and the private resale of a vehicle, which formerly was taxed at 5 per cent, \ now be subject to the 13 per cent HST. 16 FOCUS - AUGUST 2010