HST now applies to some goods and services: Thibeault

With the HST set to come into force this summer in British Columbia and Ontario, Sudbury Member of Parliament Glenn Thibeault is reminding Ontarians that the first phase of the HST actually begins this Saturday in the province.

“Most people in Ontario are under the impression the tax will only come into force on July 1st,” Thibeault said, in a press release. 

“It will come as a bit of a surprise that the HST will be charged on items and services purchased starting tomorrow if those purchases are for use after Canada Day.” 

Thibeault gave the example of an airline ticket that will be used in July to illustrate the kinds of purchases that will be subject to the 13 per cent tax as of May 1.

“What is most troublesome about this phase-in is the lack of warning to the public.  There are people who may not have accounted for this extra cost when they planned for an upcoming trip,” Thibeault said.

The first phase of the HST will be applied to things like magazine subscriptions, gym memberships, maintenance agreements, and tickets for travel or entertainment that will take place after July 1. 

“It’s pretty much any tax-eligible purchase that will be used after Canada Day,” concluded Thibeault.  “People are going to be blindsided when they have to shell out more money for these purchases than it would have cost them just a day earlier, doubt this will go over well.”