Thursday 17 December 2009

Sales tax revision for Ontario


Why it's simpler to quote the final cost to the buyer which includes all taxes!

For those of us who have been used to more advanced tax systems such as VAT, it comes as a big shock when we are in a backward tax country like Canada.

Ontario has just decided that instead of two taxes on top of the quoted prices seen by the consumer, the province will move to a simpler single tax amount that does not betray the split.

Wow, that must have had the professors of economics at U of T up all night! This no brainer for most Europeans used to advanced levels of social cooperation does not deminish the effort Ontario authorities have put on to get their sales tax onto a non-controversial plane.

Sure people may dislike the fact there are provincial and federal sales taxes, but the math need not be after what the buyer makes a decision on. Get the final number out there so that the consumer can make a sensible decision based on simple calculations like the net amounting one's pocket after a purchase.

It would be better had Ontario moved to a full progressive VAT tax system now that the systems are built into machinery and documentation worldwide and it's not such a burden for the seller!

Getting Ontario onto the modern age is a real struggle.


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