HST takes effect
HUGHES REMINDS ONTARIANS HST STARTS TOMORROW ON SOME PURCHASES
Algoma-Manitoulin-Kapuskasin MP
Elliot Lake
– With the HST set to come into force this summer in British Columbia and Ontario, New Democrat National Revenue Critic, Carol Hughes is reminding Ontarians that the first phase of the HST actually begins this Saturday in that province .
“Most people in Ontario are under the impression the tax will only come into force on July 1st,” stated Hughes. “It will come as a bit of a surprise that the HST will be charged on items and services purchased starting tomorrow if those purchases are for use after Canada Day.”
Hughes gave the example of an airline ticket that will be used in July to illustrate the kinds of purchases that will be subject to the 13% tax as of Saturday May, 1st.
“What is most troublesome about this phase-in is the lack of warning to the public. There are people who may not (have accounted for this extra cost when they planned for an upcoming,” said Hughes of the poorly publicized phase in date.
The first phase of the HST will be applied to a broad range of goods and services; things like magazine subscriptions, gym memberships, maintenance agreements, and tickets for travel or entertainment that will take place after July 1st.
“It’s pretty much any tax-eligible purchase that will be used after Canada Day,” concluded Hughes who predicts there will be more than a few shocked Ontarians on Saturday. “People are going to be blindsided when they have to shell out more money for these purchases than it would have cost them just a day earlier, it’s not going to go over very well.”
