Thank you for all taking to time to send us your questions and comments on the Harmonized Sales Tax in B.C. I have provided answers to some of your HST questions below. For more on this, visit our HST website and watch CTV News at Six for more.

  • Chris Olsen

someartist said:

"From listening to the politicians speak, they are saying that the result of the HST will allow businesses to pass the savings from the result of HST onto the consumer. How will the government and businesses guarantee that this savings will be passed on? Isn't this just a loose promise?"

  • The answer is that there is no guarantee. When business gets its HST rebate from the government they can use it for anything they want. It's their money -- no strings attached.

Mark said:

"I don't understand what is meant by 'the tax burden will be shifted from businesses to the consumer' or how 'businesses have a choice whether or not to pass on those savings to the consumer.' please elaborate."

  • Business can decide what to do with the money -- re-invest it in the business, hire people, pay off debt, cut prices or pay bonuses. In other words, you have no control over what happens to that money. It is up to the business.

Peter van der Leelie said:

"Is it true that in B.C. the liquor control board hiked prices prior to the HST taking effect as the tax would technically lower liquor prices? A liquor sales employee told me this was the case."

  • Yes, this is true.

Shawn71 said

"will HST be included in a 2 Liter soda?"

D Pyner Delta said:

"I was shocked to find out that items previously considered basic groceries under the GST have been removed from the list and will become HST taxable under the HST. This includes products like soy milk. How can this be when the governments own briefing paper said that GST exempt basic groceries would be exempt HST."

  • The easiest way to answer that is that everything you now pay GST on you will pay HST on. So for most consumer products, there is no change. But you'll pay more tax to go to the movies -- or the driving range. For groceries, there is more tax on snack foods and things you don't think of like soy milk. The federal government now makes the rules and to the federal government, soy milk is the same as Coca Cola.

ryan said:

"hi chris... the liberals have been touting the hst as something that will create jobs and increase wages. how will it do that and how long will it take? why arent the people of bc getting extra hst returns to help with the transition while ontario residents will be getting up to an extra 1000 dollars per household?"

  • The Ontario government decided to give the rebate much like the BC government gave the $100 carbon tax credit. It is a one-time payment to make the tax more palatable.

MGD10 said:

"Hello Chris, I am wondering if there will be a COMPLETE list of tax charges will be available to everyone in BC? It would be nice to know these amounts before going to the grocery store..."

Gerri said:

"I would like to have a list of what products will be charged with HST so when I shop I know what to purchase and what not to."

  • See the link on our website. If you are grocery shopping, the easiest way to judge it is: if you shop around the outside of the store, where the healthy food is, it's probably HST free in almost all cases. If you go down the aisles, you are likely to pay HST in most cases.

A few more questions:

"Must a child that can only fit into adult sizes now pay hst on his or her clothing purchases?"

  • Yes. The retail industry has been asking the government to change this for sometime to make it easier for them to keep track. So if it's made for adults -- even if a kid is wearing it -- you pay the full 12 per cent. No exceptions any more.

And finally:

"Why am I paying HST now on my cable and phone bill? And even my Costco membership renewal? "

  • That's because in all those examples some of the service is provided after July 1 so you have to pay hst for the period that falls after July 1. The companies could have made the bills a little clearer. By the way, overall you will pay more taxes on phone and cable bills because the basic service that used to be exempt is now fully taxable.