HST does not affect new car purchases

With the introduction of the Harmonized Sales Tax in British Columbia on July 1, some misinformation has surfaced as related to the HST and its affect on new car purchases.
The new HST has zero effect on the amount of tax that will be paid on a new car, and some consumers will even pay less for their vehicle under the new tax rules.
The reality is that both the GST and PST, which are blended together to form the new HST, were already charged on all new vehicle purchases prior to the introduction of the blended tax.
This means that the total tax we must charge on a new vehicle remains exactly the same – 12 per cent – as it did prior to July 1.
Some new vehicle consumers will actually find savings with the HST whenthey visit our showrooms, in that its introduction means the elimination of the vehicle “luxury tax” of up to 3 per cent on new cars worth more than $55,000.
For more information on the HST’s affect on vehicle purchases visit www.newcardealers.ca.

By Blair Qualey, President of The New Car Dealers Association of BC