What gets taxed: PST - exempt goods and services to be subject to B.C.'s harmonized sales tax
Vancouver Sun July 23, 2009
The following goods and services are currently exempt from provincial sales tax (PST), but will be subject to the full 12-per-cent harmonized sales tax when it is implemented next July.
With the new HST, businesses will be able to recover the PST portion of the tax they currently pay, rather than passing it on to the consumers as part of the price of these items.
Theoretically, that should mean that prices for these goods will come down seven percent as they become subject to the full tax.
GOODS
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Residential Fuels (electricity, natural gas) and heating.
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Basic cable TV and residential phones.
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All food products (only basic groceries will remain exemp under new tax law).
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Non-prescription medication.
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Vitamins and dietary supplements.
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Bicycles.
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School supplies (books will continue to be exempt).
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Magazines and newspapers.
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Work-related safety equipment.
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Safety helmuts,life jackets,first-aid kits.
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Smoke detectors and fire extinguishers.
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Energy conservation equipment (e.g., insulation, solar power equipment).
SERVICES
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Personal services such as hair care.
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Dry cleaning.
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Repair services for household appliances.
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Household maintenance such as renovations and painting.
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Real estate fees.
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Membership fees for health clubs.
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Movie and theatre tickets.
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Funeral services.
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Professional services such as accounting and home care.
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Airline fares within Canada
Source: B.C. Ministry of Finance
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