Fast Food Exempt From HST
Posted November 12, 2009 8:30 am.
This article is more than 5 years old.
Ontarians won’t have to pay more money for their morning coffee, doughnut or other fast food items once the new Harmonized Sales Tax is rolled out.
Provincial Finance Minister Dwight Duncan announced Thursday at a Tim Hortons that fast food and drinks will be exempt when the HST goes into effect next July. Newspapers also will not be subject to the tax.
The levy, which blends the eight per cent provincial sales tax and the five per cent federal GST, won’t apply to any prepared food items under $4.
Books, children’s clothing and footwear, diapers, car and booster seats and feminine hygiene products are also exempt from the new tax.
A recent study by tax expert Jack Mintz claims the HST will result in $10.6 billion in tax relief for certain Ontarians and $2.4 billion in tax cuts for business.
The report also suggests the HST will result in the creation of nearly 600,000 jobs across the province.
Opposition parties have been quick to remind Ontarians the blended tax will still apply to things like home heating fuel and gasoline.
The National Citizens Coalition charge it will hike the cost of many everyday items for Ontarians who are already stretched thin financially.
The group offers an online calculator to see how the blended tax will affect your budget. To use it, click here.
