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January 04, 2023 - 1:02 PM
It's not just inflation spiking the cost for certain goods in Canada.
As the cost of goods go up, so too go the taxes. The B.C. and the federal government's New Year's resolutions include bumping up sin taxes and, potentially, new home sales as consumers brace for what already could be an expensive 2023.
Among the taxes going up this year, vapers and drinkers can expect to pay more to the government for their products.
Liquor taxes are set to bump up by about 6 per cent across the country on April 1.
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Exactly how much tax Canadians already pay for their liquor appears to be disputed, as the Canadian Taxpayers Federation claims taxes make up about half of liquor costs for consumers.
A 2021 University of Victoria study, however, showed the costs for spirits is roughly 20 to 30% tax and just 16 to 18% for beer, despite claims from industry groups asserting it's much higher.
Set to increase across the country is a duty tax, charged on a per-litre basis. That excise tax is on top of GST, PST and a B.C. liquor tax of 10%.
People who use nicotine vapourizers are already seeing a price increase after a tax hike this fall.
Any vapourizer products packaged after Oct. 1, 2022, get an additional $1 per 2 millilitres of vapourizer juice for the first 10 millilitres, then another dollar for each millilitre after.
Most small bottles are roughly 30 millilitres, so, effectively doubling the price of what might be a $25 product.
Often dubbed "sin taxes," these fees are meant to deter consumers from products deemed a public health hazard.
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Traditional tobacco products aren't slated for another tax hike yet, but the B.C. government did increase the PST on tobacco last year. Some suggest it led to a downturn in legal tobacco purchases and an increase in black market sales.
Smokers and non-smokers alike will also pay more at the pump if they drive in B.C.
The provincial carbon tax is increasing three cents to 14 cents per litre for gasoline come April 1, which is on top of another 17 cents per litre carbon tax, according to the Canadian Taxpayers Federation.
Drivers are also getting dinged after a change in ICBC's used vehicle sales tax policy late last year.
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Regardless of the final sale price submitted to ICBC, the Crown corporation bases its PST charges on its own black book value of the vehicle.
The change means drivers who think they're getting a better deal on used vehicles could find themselves with steep PST charges, like a man in Castlegar who initially paid 43% PST on a used truck.
He did, however, successfully dispute the tax and got it deducted with the help of a private appraisal.
Lastly, B.C. homebuyers could face a new tax as the new premier settles into his position.
Premier David Eby proposed a house flipping tax in his by-election platform this past fall.
If passed, it could see homebuyers who sell property within two years face a new tax, which is hoped to curb B.C.'s steep housing market, according to the CBC. It's similar to the goals proposed in the controversial speculation tax.
It's still far from coming into law, however, and the most recent changes in B.C.'s housing regulation is a three-day waiting period for new buyers to reconsider their decision.
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