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In 1996, three of the four Atlantic provinces—New Brunswick, Newfoundland and Labrador, and Nova Scotia—entered into an agreement with the Government of Canada to implement what was initially termed the "blended sales tax" (renamed to "harmonized sales tax") which would combine the 7% federal GST with the provincial sales taxes of those provinces; as part of this project, the PST portion ...
The Harmonized Sales Tax (HST) was a value-added tax that combined a 5% federal portion and a 7% provincial portion into one tax paid on almost all purchases of goods and services. The HST came into effect amidst contention among British Columbians on 1 July 2010.
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In Ontario, the HST totals 13%; however, many of the pre-HST exemptions remain affecting only the provincial portion of the HST (for example, prepared food under $4.00 is not subject to the provincial portion of HST and is only taxed at 5%). On the other hand, some items that were only subjected to the PST are now charged the full HST (i.e., 13%).
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The HST is administered by the CRA. Each province that has Harmonized Sales Tax receives its portion of the HST from the CRA. [citation needed] In 2013, British Columbia removed HST after public protests against the newly taxed items under HST that were not taxed under the PST/GST system. [citation needed]
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