Fast food, coffee to escape new blended tax

The Ontario government is retreating from plans to impose the new HST on coffee, newspapers and fast-food meals. Finance Minister Dwight Duncan and Revenue Minister John Wilkinson are expected to announce Thursday morning at a Tim Hortons outlet on Islington Ave. in Etobicoke that restaurant meals costing less than $4 and newspaper subscriptions will begin only having a 5 per cent federal GST. That means the 8 per cent provincial sales tax portion of the HST, which blends the two consumption taxes as of next July 1, will not be added on your Tim Hortons "double-double" or your Wendy's Frosty. The Liberals were concerned that such an in-your-face tax being paid every morning by people in every demographic could be politically damaging.  In that vein, the government is also giving a similar exemption for newspaper subscriptions. Up to this point, books, feminine hygiene, diapers, children's clothing and kids' booster seats had been the only exempted products. However, taxes will still increase on gasoline, home heating fuel, taxis, legal services, golf green fees and hundreds of other items.

I think that this change in taxes is going to be good for the citizens of Ontario. 8% on food, and drinks can really add up for the people who buy fast food and coffee regularily. If people pay attention to this change, I think more more and more people will start buying these products. It doesn't seem like a big difference, but I think it is. A lot of money, each day, will not be speant on fast food and newspapers, because of this decrease in tax paid on these products. I am happy that this change has been made, because I like these foods, I and will coninue to prchase them.