B.C. is changing its sales tax rules to prevent tax avoidance by people selling used vehicles privately, and extending the seven-per-cent provincial sales tax to already heavily-taxed cigarettes.
The tax change for used vehicle sales was included in Tuesday91裸聊视频檚 provincial budget, and takes effect on Oct. 1. At that time, tax will apply to either the reported purchase price or the average wholesale price of that type and year of vehicle, whichever is greater.
91裸聊视频淭his approach would align B.C.91裸聊视频檚 treatment of private vehicle sales with the majority of other provinces and is intended to address tax avoidance arising from the underreporting of the price of motor vehicles from private sales,91裸聊视频 says the detailed budget released Feb. 22. 91裸聊视频淭he measure will not apply for motor vehicles involved in a trade-in.91裸聊视频
The document adds that 91裸聊视频淚ndividuals involved in private vehicle transactions are more likely to be low to medium income, living in a rural area, and male.91裸聊视频
In question period at the B.C. legislature Wednesday, Finance Minister Selina Robinson was asked about the measure. 91裸聊视频淚t91裸聊视频檚 not a new tax, it91裸聊视频檚 closing a loophole,91裸聊视频 Robinson said.
The budget also removes PST from used zero-emission vehicles, sold privately or by a dealer, if they have been driven for 6,000 km or more. That exemption is in effect as of Feb. 23.
Sales tax is added to cigarettes and other tobacco products effective July 1. That91裸聊视频檚 on top of provincial set at 32.5 cents per cigarette, $6.50 per pack of 20, and 65 cents per gram for loose tobacco.
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