3 hours ago

TORONTO — Ontario is refusing to lower its levies on alcohol as it moves towards tax harmonization and may also increase the cost of buying a privately sold used car.

Under its deal with Ottawa, Ontario is supposed to standardize its eight per cent provincial tax on products and services as it merges the PST with the five per cent federal GST.

Although alcohol taxes should come down under the merged tax, the government will add new fees to make up the difference when the blended tax takes effect next year.

A government spokeswoman says the fees on alcohol will ensure social responsibility.

When it comes to used car sales, people who buy from a private seller currently pay the provincial sales tax while both the PST and GST are applied to vehicles that are sold through licensed dealerships.

Last week’s budget suggested that province may increase the tax on privately sold cars to ensure a level playing field with dealerships, but the spokeswoman says no final decision has been made yet.

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