Friday, July 24, 2009

New HST taxes meals, new homes and haircuts

B.C. consumers will soon be paying much more tax on items that were previously exempt from the provincial sales tax, including big-ticket items like real estate, as part of the new harmonized sales tax.

Premier Gordon Campbell announced Thursday that the new sales tax, which will combine the five per cent GST and the seven per cent PST into a single 12 per cent levy called the HST, will take effect in July 2010.

Under the new tax, consumers will pay a levy equivalent to the GST plus PST on restaurant meals, airline tickets, funerals and haircuts — all items that were previously exempt from the PST.

No comments: