Like it or not HST is going to increase the sales tax on many goods and services in Ontario. While the ongoing HST debate is often centered on the addition of taxes, the increase is just part of the HST landscape.

The Ontario Ministry of Revenue has claimed that 83% of consumer purchases will not receive an increase in sales tax. That means there will not be a tax increase on most purchases made in Ontario.

In Canada the goods and services tax, commonly called GST, is a sales tax introduced by Prime Minister Brian Mulroney in January 1991. It was created to replace an existing but hidden tax in Canada called MST or manufacturers sale tax.

GST in Canada is a value added sales tax that is considered a multi level tax. Like the upcoming harmonized sales tax, there are occasional exemptions from GST. If you’re looking for a list of HST exemptions please read our Ontario HST exemptions article.