Cost to cyclists will jump from HST
Oak Bay Bikes employee Brandon Thompson at the shop Tuesday says the HST will affect bike prices next year.
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Updated: July 29, 2009 11:31 AM
The cost of travelling on two-wheels will go up next July, when the provincial government implements a 12-per-cent harmonized sales tax (HST) designed to help small businesses. The tax adds a little more to consumers' bills when purchasing goods and services that currently aren't subject to the provincial sales tax.
Among those goods are bicycles and bike safety equipment, an inclusion Brandon Thompson of Oak Bay Bikes said he doesn't agree with.
"As far as we know, so far, having the combined taxes will effectively add that tax amount to the sale of bikes, as well as safety accessories -- things that normally didn't have the PST," he said, adding the effect will be to increase costs for cyclists.
"The government was trying to reduce the carbon footprint, but bringing up the price is not really going in that direction, or working in the consumers' favour."
Although the price increase is not substantial, it will most likely affect individuals on tight budgets and families buying more than one bicycle at a time, Thompson said.
He can't predict what effect the change will have on sales at Oak Bay Bikes, but he said he expects only the sales of higher-end bikes, where a seven-per-cent increase will be financially noticeable, to be impacted.
Also on the list of goods and services that will see a tax increase are cable TV and phone services, magazines and newspapers, smoke detectors and fire extinguishers, theatre admission prices, funeral services, and airline fees.
kslavin@saanichnews.com
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