About the HST
On July 1, 2010 the Harmonized Sales Tax (HST) took effect in Ontario replacing the federal goods and services tax (GST) and the provincial sales tax (PST).
The Canada Revenue Agency administers the HST. Visit their website or call 1 800 959-5525 for more information.
Why the HST
The Ontario government brought in comprehensive tax changes to help create more jobs and spur economic growth. These changes included the HST and significant tax relief for businesses and people.
The HST makes Ontario more competitive and helps attract more investment and jobs. Many economists and businesses agreed that replacing the PST with a single value-added tax, like the HST, was the most important change the Ontario government could make to strengthen Ontario's economic competitiveness.
The HST is part of the Ontario government's Open Ontario plan, which helps families and businesses by supporting economic growth and protecting the gains Ontarians have made in their schools and hospitals.
How it works
The previous provincial sales tax was a burden for Ontario's economy.
The PST was charged on many purchases made by businesses in manufacturing goods and providing services. It penalized businesses by taxing them at every step in the production, distribution and retail processes — making the PST a tax on a tax on a tax.
Those hidden taxes caused a strain on businesses and the economy. In fact, it cost Ontario businesses $4.5 billion annually in hidden sales taxes. It drove up costs to consumers and placed Ontario's businesses at a competitive disadvantage.
The HST eliminates these hidden taxes and allows Ontario businesses to reap the advantages of a simpler tax system and pass on savings to consumers.
See and hear what business leaders and economists are saying about tax reform and the HST.
