HST Arrives In BC

How 'Neutral' Will The HST Be?

Forget what the spin meisters have been telling us about how the HST will have little to no effect on the average taxpayer. Now, we will learn for ourselves just how much deeper into our pockets the government has slipped it's greedy hand.

A grocer in Vancouver was reported on the CBC as saying:

Tsui wondered why milk and pie shells will not have HST applied but soy milk and baked pies will.

"This is ridiculous," he said. "None of my 300 members of my association have a guideline like this."

Public seminars should have been held, breaking down the specifics of the HST for those whose livelihoods depend on it, said Tsui.

Doug Smith, who manages the East End Co-op grocery store in Vancouver, agrees that figuring out the HST has been a struggle.

"Finding out what is exempt and what is not hasn't been easy," said Smith.

Some will cost more

He has calculated that as of Thursday, 20 per cent of the 4,000 items in his store will cost more because of the new tax, which combines the federal GST with the provincial sales tax.

Anything that has the word "chips," "crisps," "puffs," "curls" or "sticks" in its name is subject to the HST, as are carbonated drinks and fruit drinks with less than 25 per cent real fruit juice, said Smith.

Meat, potatoes, fruits and vegetables escape the HST, but once they're processed and put in packages, the tax applies.

A chocolate bar is taxable, but packaged chocolate chips are not.

"A meal replacement bar has to have a certain set of ingredients for it to be exempt from the tax," said Smith.

Perhaps the easiest rule to remember when it comes to groceries, said Smith, is that if GST was applied before July 1, HST will be applied after that date.