BC car luxury tax eliminated with introduction of the HST
As most BC members know, there was an additional 3% PST tax on new vehicles costing over $55k. Total tax was PST + GST + 3% = 15%. This was known as the car luxury tax. With the introduction of the HST on July 1, the luxury tax has been eliminated. Total tax payable on any new vehicle regardless of price will be 12%.
For those of you taking possession of new cars in BC in the next few weeks you may want to hold off until after July 1.
On the other hand, the full HST will apply to private used car purchases. Previously it was GST only.