What is Provincial Sales Tax?
In most of the provinces in the country of Canada, a sales tax called the provincial sales tax is applied on a number of goods and services. In provinces like New Brunswick, Nova Scotia, Labrador and also Newfoundland this financial tax is mixed with the federal goods and the service taxes in one harmonized sales tax. This particular financial tax here is a tax that does vary from one province to another. It is also given other names in other provinces in the same country. In Ontario and Manitoba it is known as the retail sales tax. The province of British Columbia calls this particular tax as social service tax. The provinces of Saskatchewan, Ontario, British Columbia, Manitoba, Quebec and Prince Edward Island have their own state mechanism to collect the sales tax.
Goods on which the provincial sales tax are applied varies by each province so does the rate change. Also for all those provinces for which these it is applied and also it is applied to the GST and also the combined cost, the provincial revenues also increase or decrease with respect to those changes in the GST. The QST is a sales tax that is value added when you talk all about this tax administered by the state. All the other taxes are cascading as decided by that particular province.
It is known that not every province has its sales tax that is operated by the provincial governments. However the main sales tax systems in this country are operated by British Columbia, Saskatchewan, Ontario, Prince Edward Island and Manitoba. Alberta is one place that has a sales tax system that is restricted. Other provinces of Canada have some interesting old sales taxes along with the value added taxes. For a simple example, the sales tax that is charged by Quebec on the insurance premiums is not one that is refundable and you must pay it back with interest on audit.
In British Columbia the percentage rate is about seven percentage, the provincial rate is however only about twelve percentage. Here alcohol is taxed at about ten percent. Also the passenger vehicles are all taxed anything between seven to ten percentages that is based on the price of purchase. In the province of Alberta the rate is zero percent. The provincial rate or the combined federal rate is at five percent. In the province of Alberta there is no provincial sales tax. But there is a tax of about four percent on lodging. In Saskatchewan the rate is reduced from about seven percent from the month of October in the year 2006. There is a special tax on the consumption on liquor. However if it is a meal that is non alcoholic then it is not charged. In Ontario the percentage of rate is eight percentages and the combined federal rate or the provincial rate as it is called is thirteen percent. There is some tax on the alcohol consumption and also on lodging in this province