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There
are many benefits to the HST:
The benefits include HST exemptions, lower
prices, a low
income tax credit, rebates for new
home purchase,
and residential
energy
HST Exemptions:
Under the proposed HST, a number of products
will be exempt from the seven per cent
provincial portion of the B.C. HST:
Books
Children's-sized clothing and footwear
Children’s car seats and car booster
seats
Diapers
Feminine hygiene products
Motor fuels, such as:
Gasoline,
ethanol, diesel and biodiesel when used
in motor vehicles as well as locomotive
fuel used for trains, marine diesel used
for boats, and aviation fuel and jet fuel
used for aircraft.
*All
items currently exempt from the Goods
and Services Tax (GST) will be exempt
from HST, including items like basic groceries,
prescription drugs and residential rent.
More information
regarding HST exemptions and rebates is
available [
here ]
Lower
prices:
Right now, provincial sales tax (PST)
is paid by every business at every step
in the creation of a consumer product.
You may not realize it, but the PST is
charged multiple times during the production
of a product before that product reaches
the store.
For
example, a trucking company that moves
products to the store currently pays PST
on equipment used to maintain its fleet
(i.e. tires). That cost and other business
inputs like it are passed down to the
consumer who purchases the end product.
Under
the proposed Harmonized Sales Tax (HST)
most taxes paid on business inputs are
refunded to the business, and those savings
can be passed on to consumers:
When
three Atlantic provinces adopted HST,
consumer prices fell, according to a study
by University of Toronto professor Michael
Smart.
When the B.C. HST is implemented, similar
price reductions are expected.
Low
Income Credit:
Low
income families and individuals will receive
a B.C. HST Credit of $230 for individuals
with income up to $20,000 and $230 per
family member for families with incomes
up to $25,000, paid quarterly with the
GST credit. The credit will benefit over
1.1 million British Columbians.
Lower taxes:
The
move to HST follows over 120 tax cuts
since 2001. British Columbia now has the
lowest personal provincial income taxes
in Canada for anyone earning up to $118,000,
and 325,000 low-income British Columbians
pay no provincial income tax at all.
Other low-income earners have seen income
tax reductions of over 70 per cent.
New
Home Rebate:
A
rebate will ensure that, on average, purchasers
of new homes up to $525,000 do not pay
any more provincial tax due to harmonization
than is currently embedded as PST in the
price of a new home. Purchasers of new
homes above $525,000 will be eligible
for a rebate of about $26,250 (i.e., a
rebate on the first $525,000 of value).
Buyers of
used homes will NOT pay any HST.
Residential
Energy Rebate:
We
will also provide a provincially-administered
point-of-sale rebate for residential energy,
ensuring the HST will not increase consumers’
costs for oil, electricity, natural gas
or propane used to heat or power homes.
Additional Information:
Benefits
for Families and Consumers
Benefits
for Low-Income Families and Seniors
Benefits
for Home Buyers
Benefits
for Taxpayers
Benefits
for Small and Medium-Sized Businesses
Benefits
for Job Supporting Industry
Benefits
for Rural and Remote Communities
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