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HST issue dominates council meeting

File photo An issue that was predominant throughout several council meetings this summer was the Harmonized Sales Tax, or HST, and has now come back to the forefront of City Council meetings.

File photo

An issue that was predominant throughout several council meetings this summer was the Harmonized Sales Tax, or HST, and has now come back to the forefront of City Council meetings. Councilors, Mike Anthony and Judy Koziol put forward a motion that there are “serious taxation issues” with the new HST.

“There are many items that have GST and PST on them, so if you harmonize them it makes it easier for them,” Anthony said. “But here’s the catch. There are a lot of items that only have one level of taxation: GST. What this government is choosing to do is no longer leave them at one level, but suddenly add the new level of PST; an extra eight percent.”

Items affected by the new HST would be gasoline, meals under four dollars, coffee, train tickets, airfare, internet, phone service, cable service, etc... Anthony also said that there are some items on the list which he finds very surprising.

“To me, this got really strange: Vitamins and Christmas trees will be subject to a new eight percent tax increase,” Anthony said looking visibly annoyed.

Anthony stated that unlike the original GST introduced by the Mulroney government which was meant to be temporary, this new HST is here to stay. He also said, however, that residents of Ontario will be given a one-time rebate – something he thinks just won’t cut it.

“They’re saying we’ll give you a one-time rebate of a thousand dollars. That’s not gonna make up for eight cents every time you buy gasoline; for all of your heating, natural gas and electricity,” Anthony explained.
Nonetheless, Anthony did state that he believes the new HST is a good idea in theory, because it could potentially save businesses billions of dollars on items which already had both the PST and GST. He went on to say that to add the PST portion to items which never had it before is unfair to the residents of Ontario. He continually explained there is something that can be done about this issue.

“You live in North Bay and you’re worried about paying eight percent more; email your councilor and we’ll send it off to the MPP. Or email the MPP yourself, but you have to let them know it’s a concern.”