The new controversial tax bill that was requested by the Ontario and British Columbia governments have passed in both the Ontario legislature earlier today and the Federal legislature just moments ago which amends current provincial and federal tax law to allow the provinces, in the case of Ontario, to combine their provincial sales tax of 8% (PST) and the federal goods and services tax at 5% (GST) into a new combined 13% tax called the harmonized sales tax (HST).  Both British Columbia and Ontario are set to unveil the new tax on July 1st 2010.

Premiere Dalton McGuinty of Ontario has said that combining the taxes will lower costs for businesses and are counting on the money saved to translate into jobs.  Ontario is struggling after the damage done to the auto sector and is riding a massive deficit into 2010 so the province is desperate to generate income to meet their obligations. 

The federal bill passed by a margin of 253 to 37.

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• HST bill passes, 13% tax starts July 1 (thestar.com)