What Does the HST Tell Us?


I got a very well organized and informative guide in the mail today called “What changes –and what doesn’t change– under the HST”, which may be one of the very few things I like about this new Ontario tax scheme.

Governments often use taxation to try and influence of buying behaviour of their citizens, so I thought I would take a look and see what behaviours the government is trying to change with the HST:

  • Smelly Ontario – Apparently they want us to dry-clean less, with taxes going from 5 to 13%
  • Drunk Ontario – Alcohol will be taxed at 13% instead of the old 17% (although they footnote that they will stop people from drinking so much with ‘other fees’)
  • Lazy Ontario – Gym, athletic memberships, fitness trainers, hockey rink rentals, hall rentals, hunting licenses, fishing licenses and golf green fees will increase from 5 to 13%
  • Ugly Ontario – Hair stylists, barbers and aesthetician services up to 13% from 5%
  • Lawless Ontario – Legal fees will be taxed at 13% instead of 5%
  • Cold (winter) and Hot (summer) Ontario – Electricity & heating bills to go from 5 to 13% tax
  • Flooded and Electrocuted Ontario – Home visits by plumbers, electricians, etc. will go from 5-13% as will home renovations
  • Digitally-divided Ontario – Internet access will now be taxed at 13% instead of 5%
  • Wild Ontario – Landscaping and snow removal up to 13% from 5%
  • Homebound Ontario – Hotel rooms (from 10%), taxis, campsites, domestic air, rail, boat and bus travel all up to 13% from 5%, as does fuel for your car, unfortunately you will have fewer magazines to read at home since subscription magazines also go from 5 to 13%
  • Double-dipped Ontario – Remember that new car that you paid 13% tax on, well now the government makes 13% again –up from 5%– when you sell it used!
  • Suburban & Condo Ontario – New homes over $400,000 will be taxed at 13% instead of 5%, and AFAIK can only be found in the suburbs or in condo dwellings. Real estate commissions will also be taxed more, at  13% instead of 5%.
  • Scurvied Ontario – Vitamins up to 13% from 5%
  • Stiff & sore Ontario – No reduction on Viagra tax, they are increasing taxes on massage therapy from 5 to 13%
  • Entertained Ontario – Tickets for professional sporting events and movies will DROP from 15% to 13%.
  • Alive Ontario – Death will cost you more, with funeral services taxed at 13%, up from 5%… sure as death and taxes.

    Advertisements

    One Response

    1. I was talking to one of my online retailer friends yesterday, and he informed me that one of the biggest reasons for the HST is actually to tax online sales. For people that live in other provinces and buy goods from Ontario, they were getting a provincial tax break… now then don’t.

    Leave a Reply

    Fill in your details below or click an icon to log in:

    WordPress.com Logo

    You are commenting using your WordPress.com account. Log Out / Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out / Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out / Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out / Change )

    Connecting to %s

    %d bloggers like this: