Is there a major difference between the new British Columbia HST and the Ontario HST which are both due for introduction on July 1, 2010? This article examines the fundamental differences between the two harmonized sales taxes in addition to how the two governments have dealt with the HST tax before elections and prior to their implementation. The differences between the BC HST versus Ontario HST are profound. Please continue reading for more information about this issues.

The BC HST versus Ontario HST – How Do the Two Harmonized Sales Taxes Differ? What are the Differences between the BC and Ontario Taxes?
There are a few subtle differences between the British Columbia Harmonized Sales Tax and that of Ontario design to harmonize theirs. Although both the B.C. HST and the Ontario HST will be implemented for July 1st, 2010 (the same date), there are some differences between how the two taxes were adopted, the rules/policies surrounding them as well as the public backlash against the 12% British Columbia tax. According to many publications and articles, the public BC HST backlash against Gordon Campbell’s Liberal Government over the introduction of this botched tax burden is likely to heat up not only until next July, but far beyond the implementation date of the new harmonized sales tax. With opinion polls and survey results coming in, it is no wonder that the BC Liberal Government has seen their public support drop drastically and significantly over the past few weeks, and that is likely just the beginning. There is much anger among British Columbians over the new BC HST, and there are many reasons for it when compared to the Ontario HST announcement that did not see such a huge public backlash. The latest stats indicate that the BC Liberals have only the support of 25 to 30% of BC residents, a significant drop of more than 15% during the last election. In addition, more than 85% of British Columbians oppose the new B.C. HST. However, how does the BC HST compare with the Ontario HST, and what are the differences? Read below for some answers:

Difference #1 Between Ontario HST and B.C. HST – Tax Rate and Announcement Date
Firstly, the Ontario HST is set at 13% and will be implemented on July 1st, 2010. The Ontario Government presented the Harmonized Sales Tax issue back in January 2009 and announced that they were going forward with implementation in March 2009. On the contrary, the BC HST is set at 12% tax. There was no initial consultation or warning, but just an announcement in late July 2009 for eventual implementation on July 1, 2010.

Difference #2 Between British Columbia and Ontario HST Taxes – Election Promises
Secondly, how the two harmonized sales taxes were introduce and announced were certainly very different. In British Columbia, the BC Liberal Government had promised NOT to increase taxes or implement the harmonization of the provincial PST and the federal GST during their last election campaign. On the contrary, Ontario Premier Dalton McGuinty had unveiled the Ontario HST at 13% in March this year prior to their election. Although the Ontario public support for Dalton McGuinty dropped double digits, he was honest in terms of announcing the harmonization of the Ontario HST prior to the election. In addition, even with all the scandals in Ontario as well as the economic fallout, Dalton McGuinty continued to gain supporters and the support of the public with the announcement of the Ontario HST. In contrast, the BC Liberal Government, hoping for the same reaction, fell short of their promise to keep or lower taxes in the province. On the contrary, the 12% HST will effectively hike up the price of the majority of goods, services and products in BC, leading to a huge tax burden on everyone. The BC Liberals broke their election promise. The Ontario Government mentioned the benefits of the Ontario HST during their last election campaign and were voted into office. Therefore, the implementation of the Ontario HST did not come as a surprise to Ontarions, whereas the BC HST came as a complete surprise to anyone living in British Columbia.

Difference #3 of Ontario Versus BC HST – Warnings, Consultation, Consumer Group, Rebates
Thirdly, another major difference between the B.C. HST versus the Ontario HST is that McGuinty had already introduced the HST to the general public back in January 2009, albeit to negative reactions and drop in public support. However, the Ontario government confided within the business industry as to the advantages and benefits of the Ontario HST. In addition, McGuinty lead many consumer group analysis and surveys before announcing the implementation of the Ontario HST tax. In the end, the announcement came in March 2009 and the Ontario government introduced a $1000 per family rebate to offset some of the new Ontario HST tax burden on every day individuals with families. In addition, the Ontario HST sales tax increase will be somewhat offset by special rebates totalling $1,000 for families with an income below $160,000; singles with an income below $80,000 to get $300. On the contrary, the BC Liberal Government DID NOT consult with the business community nor the real estate construction industry as to the benefits or effects of the new Harmonized Sales Tax. To most businesses and consumers, the announcement of the BC HST came as a total surprise. In addition, there was no consultation, no warning and absolutely no rebates, just an extra tax burden that the BC Liberal government expected the general public to suck up and support. Because of these differences, the anti-HST movement and public backlash will certainly grow throughout the year.

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