Fri. marks one-year anniversary of HST
Posted July 1, 2011 11:37 am.
This article is more than 5 years old.
It’s an anniversary that doesn’t prompt celebratory barbecues — it was one year ago Friday that the harmonized sales tax (HST) took effect in Ontario.
The year-old tax is a combination of the five per cent federal goods and service tax (GST) and the eight per cent provincial sales tax (PST).
Consumers now pay 13 per cent tax on many items and services that were previously PST exempt, including funerals, heating and electricity, gym memberships and Internet access.
Ontario Finance Minister Dwight Duncan said companies haven’t yet started passing along savings to consumers, but he believes that will happen soon.
The HST removed the PST companies paid on new equipment.
The Progressive Conservatives and New Democrats claim to have found no evidence that the HST is helping to lower prices for consumers and both parties have vowed to remove the provincial portion of the tax from electricity and home heating bills.
With files from The Canadian Press.