These three are the most important items in the list affected by the new tax reform in Canada. These are not luxury products, these are first-necessity goods or essential goods. We can’t live without electricity, heating and gasoline nowadays. And our government decided that it is OK to increase prices for essential goods by 8%. It is far away from the complete list of goods and services affected by HST introduced on Canada Day.
But what if we think about consequences of this increase? What usually happens when oil prices go up? What happens when electricity prices go up? Natural Gas?
Almost all the prices for all the goods and services can be affected! Not only those from the official list provided by the Government.
Fuel and electricity components take the big portion in operational costs of almost every single business. It will definitely cause all the prices to go up very soon, probably by the same 8% as gasoline, heating, electricity, etc…
Everything around us can be affected:
- Basic Groceries (Dairy, Meat, Vegetables, Fruits, …) due to increased delivery (fuel) and storage (electricity) costs
- Clothing due to delivery and stores operational costs (lights, air-conditioning, heating)
- Restaurants (delivery, storage)
- Furniture and Appliances (fuel costs)
- Any kind of Transportation (probably GO/TTC/Viva/YRT public transit tickets due to gasoline and electricity price increase)
- Cable, Home Phone, Wireless (electricity)
- Insurance (increase of operational cost due to fuel and electricity prices)
- House Maintenance Products (cleaners, supplies, …)
- Auto Labor and Repair Services, Parts
- Health Products
- Sports Equipment
- Professional Services
- and many, many, many more…
In reality all the goods and services are definitely affected by the HST transition. We see it sooner or later in the prices increase for everything. And the one-time maximum of $1000 tax cut per family to help in HST transition means absolutely nothing. It is just a mockery from our Government.