The Commerce Times

What HST means for student budgets

By Kaitlin Minsky

July 1st 2010, marked the day the provincial government implemented the new Harmonized Sales Tax. The HST combines Ontario’s PST, eight per cent, with Canada’s GST, five percent. Students should keep in mind that not everything is slapped with the HST tax.

Here is a basic list of commonly purchased goods and services used by students, which may alter your lifestyle choices and spending habits.

For students who enjoy splurging at the mall after, in between, or even during class, there’s now a higher price tag for getting those clothes cleaned. Although most students may not use dry cleaning services, you never know what could happen to that white shirt or new dress.

Students will be happy to know that groceries, except snack foods, will not be affected by the HST. Included in the untaxed category are basic groceries such food as vegetables, bread, and milk.

Living in downtown Toronto during the school year can be pricey enough as it is, that’s why students should be aware that their monthly living expenses may increase slightly. Although cable and cell phone service will remain unchanged (they’re already taxed PST and GST), both internet service and electricity and heating will be affected by the HST. Think twice before you decide to turn up the heat this winter, or leave all the lights on in the house.

Getting around Toronto on busy evenings and weekends will be slightly more expensive for students. The HST will now be applied to taxis, as well as any domestic travelling leaving Ontario including flights, trains, and busses.

Those who enjoy kicking back and reading their monthly magazine subscription will also have to pay a bit more for that perk. Magazines bought in stores are already charged PST and GST, but now monthly subscriptions will have the HST tax.

One of the most talked about HST pitfalls is its effect involving our cars. There aren’t any changes to auto insurance or vehicle parts, but filling up the tank will cost everyone a pretty penny at the pump.Initially taxed only GST, gasoline prices will be taxed the 13 per cent. Now might be a good time to invest in that metro pass.

Throughout the school year, most students try to maintain a healthy and active lifestyle, however students will now have to pay the HST for massage therapy sessions, gym memberships, vitamins, and fitness trainers.

Treating yourself to a new hair cut or a mani-pedi will force many students to think twice about scheduling their next appointment. Services from hair stylists and estheticians will now be charged HST.

If you’re one of the many who smoke, it looks like there’s another hurdle for you to overcome to get that nicotine fix. Stopping by the nearest convenience store to grab a pack of cigarettes will cost you a few more dollars. Maybe this will help kick that bad habit.