Ontario’s New 13% Harmonized Sales Tax – What It Will Mean To You
Can you imagine paying additional PST on all of the services we don’t pay now? Next summer (2010) the Ontario Government is set to put into force its new harmonized GST/PST sales tax which will apply a 13% sales tax to everything we purchase. Things That Were Not subject To the Current 8% PST Will Be Now Taxed. As a result, things that were not previously taxed under the current Ontario Provincial Sales Tax (PST) will be taxed at 8%.
The new 13% tax will therefore apply to things like your electric bill, your gas bill, your water bill, condominium fees, insurance premiums, and every other goods and services you purchase. There are almost no exemptions.
The current Ontario PST tax does not apply to services, nor does it apply to the purchase of certain goods. The new 13% tax will therefore extend the old 8% PST tax rate to the purchase of all goods and all services.
The New 13% Tax will apply to the Purchase of All New Homes. The new harmonized GST/PST will also apply to all purchases of all new homes. If a person were to purchase a new $1 million dollar home in Toronto, they would have to pay roughly $200,000 in taxes as a result of the Ontario land transfer tax, the new city of Toronto land transfer tax, and the new harmonized 13% GST/PST. Think about that and what that would do to real estate values in Toronto. It will cause property values to fall and kill the new home construction industry and the jobs it creates.
The New 13% Tax Is An Assault On Your Primary Residence. Canadians have had two things that they have always been able to count on as being tax free – things that they could use to save money and accumulate wealth. They are your (a) primary home and (b) RRSP. That’s it.
To sign a petition go to Stop the Unfair Tax Grab.