Canada Ontario Harmonised Sales Tax rise proposed

The Canadian province of Ontario has proposed a rise in its Harmonised Sales Tax (HST), which Is a combination of the federal Canadian GST and local PST.

The current Ontario HST rate is 13%, which is about the average for Canada.  However, the authority reviewing the provision on public transport in Toronto has recommended that this be increased to 14% to fund much needed improvements in the local public transit system.  Such an increase in Toronto would require an equal HST increase across the rest of the Province.

Manitoba plans to raise its Sales Tax to 8% in July, which with GST means the combined rate will go to 13%.  Other states, such as British Columbia, are in the process of reforming their consumption tax regimes.