The government has approved a bill for a harmonized sales tax. This will combine the G..S.T(5%) and P.S.T(8%) portions into one sales tax of 13%. The plan was aimed to save companies money on invoicing and paperwork, increasing productivity. This may be the case but it takes a larger effect on the general public, especially in a time of economic hardship like the one were in now. The plan is to offset the tax by providing family households, who’s income was less than $160 000, with three cheques throughout the year totaling $1000. There will be things exempt from the tax such as home heating fuels, childrens diapers and shoes, books, car seats and more but be prepared to pay more when purchasing a home. For new homes being purchased under $400 000 only 5% GST will still apply, houses between $400 000 and $500 000 will have partial tax and anything past $500 000 will be taxed at 13%. I’m still trying to get my hands on a list of other services that will be taxed, hopefully the government has made provisions for closing costs such as legal fee’s, adjustments and mortgage insurance which only were taxed with P.S.T. Three atlantic provinces have already adapted the system as well as Quebec and have said that it has worked well for their economy. I’ll keep you posted but in the mean time why don’t you comment and share what you think on the matter.
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