GST Cut Finally Kicks In Saturday

But how much will you save when the one percent cut comes into effect and things get back to normal on Sunday?

It depends on what you’re looking to buy, but the more expensive the item, the more you’ll get to keep.

“On major purchases of $1,000, you will save about $10,” explains Home Depot’s Matt Winters.

Buy a new car and the number soars to around $300. But perhaps the biggest saving will be for those purchasing a newly built home. They could wind up with an extra $6,000 in their pocket.

“A one percent reduction allows people to buy a new home, extra upgrades that they weren’t going to be able to afford, some new furniture,” points out Lara Coombs of the  Toronto Homebuilders’ Association.

And talk about death and taxes – passing on will be cheaper, too.

“The average funeral in the city of Toronto ranges from $5,300 to $5,500. You are looking at a savings of about $55,” outlines funeral home director Lora Avgeris.

And while most of us can’t afford to wait, if you’ve got a non-pressing purchase in your future plans, remember this: Prime Minister Stephen Harper has pledged to pull the GST down by another percentage point before the end of his mandate.

Not so coincidentally, you can expect that to happen just prior to a snap election.

So will the one percent solution really make a difference?

Here’s an approximation of what you can expect to save on a wide variety of items.

Remember that not all the prices will remain static and some could be adjusted to actually stay the same since stores don’t have to pass along the savings to customers.

That means that $2 newspaper you’ve been buying on the weekends could well stay $2, even though the tax on it has gone down a bit. Cab fares will also remain the same. So will city parking rates

Some critics expect you won’t see much change on gas prices either, with the oil companies absorbing the reduction.

One Per Cent G.S.T. Reduction Costs

Mazda 3
Now (Before Tax): $26,100
With Current Tax: $30,015
After Cut: $29,754

Desktop Computer: Dell Dimension 5150
Now (Before Tax): $999
With Current Tax: $1148.85
After Cut: $1138.86

Toshiba 62″ Widescreen Projection HDTV
Now (Before Tax): $2999
With Current Tax:  $3448.85
After Cut: $3418.86

G.E. 18.2 Cubic Foot Refrigerator Freezer
Now (Before Tax): $499
With Current Tax: $573.85
After Cut: $568.86

Haircut/Stylist
Now (Before Tax): $60
With Current Tax: $69
After Cut: $68.40

Bathroom Renovation
Now (Before Tax): $10,000
With Current Tax: $11,500
After Cut: $11,400

Blue Jeans
Now (Before Tax): $60
With Current Tax: $69
After Cut: $68.40

Pizza (Delivered)
Now (Before Tax): $20
With Current Tax: $23
After Cut: $22.80

Leather Sofa
Now (Before Tax): $1899.99
With Current Tax: $2184.99
After Cut: $2165.99

Restaurant Meal for four
Now (Before Tax): $200
With Current Tax (before tip): $230
After Cut (before tip): $228