Loading...
Huron Expositor, 2009-12-09, Page 9• News • The Huron Expositor • December 9, 2009 Page 9 Local businesses wary about HST during current recession Dag Schwab Small businesses in Huron East's service and hospitality industries may see a backlash from recession - wary consumers when the new har- monized sales tax takes effect on July 1, 2010, the municipality's eco- nomic development officer says. "I know there has been some recov- ery with the economy, but we've got a longway to go yet, says Jan Haw- ley. 'When people are still strug- gling, when there are reports of jobs . lost, I see this as more out-of-pocket expenses. And we depend on the ser- vice industry, especially in this area. People might think twice about pay- ing for those services (after July 1)." The Ontario government an- nounced in the spring it will combine the 8 per cent provincial sales tai with and the 5 per cent goods and services tax to create a new 13 per cent tax. Items such as tobacco and maga- zines will no longer be exempt from PST, along with the professional ser- vices of lawyers and accountants and personal services such as haircuts and aesthetics. "It's definitely going to affect us," says Shelly McMillan, owner of The Looking Glass, a full service salon and spa on Main Street. "It's an eight per cent price increase that's not go- ing to our bottom line." McMillan says The Looking Glass may have to raise prices on top of the extra 8 per cent. "We may have to, or else we'll be farther behind," she says. "I don't know what else we can do." Some retailers won't be having the same problem, as items such as basic groceries, children's clothing, foot- wear, books and newspapers will be exempt from the blended sales tax. But in most cases, retailer 3 and other businesses will be forced to charge more for many items. "I know that business people are concerned about it because it looks as if costs will go up for the. con- sumer and therefore adversely affect their bottom line," says Janet Snid- er, business manager for the Huron East Chamber of Commerce. In spite of the concern about HST, Snider says the tax will be applied only once, rather than on every item bought to make a product. "For example, when lumber is supplied to a retail building outlet, there is tax on the lumber when it is cut, tax on the transportation and tax again when it is sold. In the new HST, the tax is applied only once," she says. Snider also says all items bought to run a business will have the tax rebated. "For most businesses, (HST) will probably be neutral to slightly ben- eficial," says Brian Wightman, a certified general .accountant with an office on Main Street. "Most busi- nesses will, over time, see their costs go down." Wightman says his corporate cli- ents now registered to receive 5 per cent back on GST as part of an in- put tax credit will receive 13 per cent back after the HST takes effect. But for personal clients, there will be an increased cost. Jim Niesen, business and loans manager at the Huron Business De- velopment Corpo- ration, says some businesses will also benefit from having the two taxes harmonized because there will be more expedi- ency from less pa- perwork. While some busi- nesses sometimes get into auditory 519-522-2050 T GIFT • SELECTION • SAVINGS • SERVICE trouble because of complications from PST, the HST may eliminate that problem, he says. "But the problem is, there is a whole slew of services that will now have extra tax, taking more money out of consumers' pockets and creat- ing less disposable income, he says. "Havingmore disposable income would hep us come out of the reces- sion," he says. "This (HST) seems like it's being implemented at pre- cisely the wrong time." For consumers living on a tight budget, it may be difficult to keep up with the bills after electricity, hydro and gas are taxed at 13 per cent, says Mau- reen Spittal, chair of the Seaforth and Area Food Bank. "It's going to hit people hard," she says, adding that low-income earn- ers will almost al- ways pay for heat and electricity be- fore food. "They have no choice. They can only turn the heat down so low. It's definitely going to be a big hard- ship." According to Statistics Canada, the 8 per cent tax hike in gas and home utilities alone will cost the average household more than $300 per year. Once the HST takes effect, other services such as dry. cleaning, funer- al costs, hotels, restaurant meals, ice rink rentals and admissions un- der $4, such as those for public pools, will carry the extra cost. Publication and Notice of 2008-2009 Financial Statements Under Subsection 252(2) of the Education Act, school boards are required to make the following Mandel data available to ratepayers or supporters: 2008 - 2009 Financial Statements for the year eluding August 31, 2009 Notes to the Financial Statements Auditor's Report These reports are available for viewing on the Avon Maitland District Sdiool Board website at: www.yourschools.ca If you would like a printed copy please call: (519) 527-0111 or 1-800-592-5437 Avon Maitland CHUCK REID Director of Edut..ttion kvww.yourschools.ca • JENNY VERSTEEG Circa Ttlomc H�-�'e "If we all give a little, Qo„-iorr We all get a lot THAN K YOU $47,789.62 Raised for New Medical Imaging Unit (X -Ray)