Starting on January 1st, the rate of PST (only in British Columbia) on vapour products increases from 7% to 20%.
Another part of this tax hike is that GST will be charged on the subtotal and PST.
For example:
| Subtotal | $100.00 |
| PST (20%) | $20.00 |
| Total | $120.00 |
| GST (5%) | $6.00 |
| Grand Total | $126.00 |
Another way to look at it is:
| Subtotal | $100.00 |
| PST (20%) | $20.00 |
| GST (6%) | $6.00 |
| Grand Total | $126.00 |
Compare this to the old tax rate:
| Subtotal | $100.00 |
| PST (7%) | $7.00 |
| GST (5%) | $5.00 |
| Grand Total | $112.00 |
Effectively, the total tax rate jumps from 12% to 26%.
This tax hike is part of the British Columbia government's plan to reduce youth uptake of vaping products.
All DashVapes purchases with a final destination in British Columbia only will see the change of this tax rate. All other provinces remain unaffected.
CA