HST debate dominates legislature
By DAN PELTON Staff Reporter
Last week, she joined fellow PC MPP Peter Shurman (Thornhill) in condemning imposition of the HST on parents of autistic children who pay for Intensive Behavioral Intervention (IBI) provided by unlicensed personnel.
HST debate dominates legislature
By DAN PELTON Staff Reporter
As the July 1 date for implementing the Harmonized Sales Tax (HST) approaches, opposition MPPs at Queens Park are ramping up their campaigns against it.
Meanwhile, the McGuinty Liberals, through various press releases and website referrals, seek to clear up what they see as misconceptions about the impact of the new tax system, which aims to replace the current GST and PST with a single tax.
Dufferin-Caledon MPP Sylvia Jones, Progressive Conservative community and social services critic, has been vocal in her opposition to the HST since it was first announced.
Last week, she joined fellow PC MPP Peter Shurman (Thornhill) in condemning imposition of the HST on parents of autistic children who pay for Intensive Behavioral Intervention (IBI) provided by unlicensed personnel.
?Parents of autistic children who have to pay out-of-pocket for Intensive Behavioural Intervention (IBI) spend on average $60,000 per year for therapy,? said Ms. Jones. ?Starting July 1st, IBI therapy providers who are not registered psychologists will have to charge their clients the HST.?
The Tories aimed to have a vote Wednesday on a motion by PC MPP Lisa MacLeod, calling for the HST to be postponed until the ?the Liberals have a mandate from the people.?
While officially stating that the vote will give Liberal backbenchers an opportunity to vote against the HST, the consensus is that the vote was an attempt to embarrass the government, which the Tories say is trying to pull off a $3 billion tax grab in the guise of revenue neutrality.
The Liberals stopped the move by changing the legislative agenda.
The government, on the other hand, has maintained that replacing the PST with the harmonized tax will eliminate the embedded sales tax that many products carry, thus reducing overall costs and allowing businesses in the province to be more competitive.
While a company may face charging HST on a product now not subject to PST, it will no longer have to pay tax on raw materials and supplies it requires to keep its plant in operation.
The government also says most products people buy every day, such as basic groceries, prescription drugs and municipal public transit, will see no change in tax with the HST. It contends 83 per cent of consumer purchases will not see a new tax.
The government has used an example to explain. In May 2010, a person pays for seasonal yard maintenance service, 50 per cent of which will be performed on or after July 1. The HST would apply only to the 50 per cent performed on or after July 1.
Following is a list of common goods and services. It includes information that says if the product is subject to GST and PST now, and what affects the HST will have on it.
Clothing and footwear:
Adult Clothing: - 5% GST, 8% PST, remains at 13% after HST; Children?s Clothing - 5% GST, No PST, remains at 5%; Children?s Footwear - 5% GST, No PST if purchase is under $30, remains at 5% for footwear up to size 6; Dry Cleaning Services - 5% GST, No PST, increases to 13% after HST.
Food and Beverages:
Basic Groceries - No GST, no PST, no HST; Snack foods (i.e. chips and pop) - 5% GST, 8% PST, remains at 13 %; Prepared food and beverages under $4 - 5% GST, No PST, remains at 5%; Restaurant meals over $4 - 5% GST, 8% PST, remains at 13 %; Alcoholic Beverages - 5% GST, 10-12% PST, decreases to 13%. Home Services
Cable television - 5% GST, 8% PST, remains at 13%; Cell Phone Services -5% GST, 8% PST, remains at 13%; Municipal Water - No GST, No PST, No HST; Home maintenance equipment - 5% GST, 8% PST, remains at 13%; Home Phone Services - 5% GST, 8% PST, remains at 13%; Home Service Calls to Repair Appliances - 5% GST, 8% PST, remains at 13%; Home insurance No GST, 8% PST, Remains at 8%; Electricity and Heating - 5% GST, No PST, increases to 13%; Internet Access Services - 5% GST, No PST, increases to 13%; Home service calls by Electricians/Plumbers/Car penters to maintain or repair - 5% GST, No PST, increases to 13%; Landscaping, Lawn Care or Private Snow Removal - 5% GST, No PST, Increases to 13%; Home Renovations - 5% GST, No PST, increases to 13%. Accommodation, travel
Luggage, Briefcases, Bags etc. - 5% GST, 8% PST, Remains at 13%; Municipal Transit - No GST, No PST, No HST; Hotel Rooms - 5% GST, 5% PST, increases to 13%; Taxis - 5% GST, No PST, increases to 13%; Camping Sites - 5% GST, No PST, increases to 13%; Domestic Air, Rail and Bus Travel originating in Ontario - 5% GST, No PST, increases to 13%; Gasoline, diesel fuel - 5% GST replaced by 13% HST, in addition to federal and provincial excise taxes totalling 24.7 cents per litre.