Vancouver, British Columbia – British Columbia’s new harmonized sales tax (HST) will not affect new-car purchases, according to the New Car Dealers Association of BC.

Blair Qualey, president and CEO of the association, said that the new tax, which went into effect on July 1, has “zero effect” on the amount of tax that will be paid on a new car, and some consumers will even pay less for their vehicles under the new tax rules. Both the GST and PST, which are blended together to form the new HST, were already charged on all new-vehicle purchases prior to the introduction of the blended tax.

The total tax on a new vehicle remains at 12 per cent, which it did prior to July 1, Qualey said.  On some vehicles, the introduction of the HST eliminates the “luxury tax” of up to three per cent charged on cars worth more than $55,000.

The association said that consumers researching used vehicles should also be aware that the combined tax rate means that private sales are now subject to the same tax as public sales, and dollar-for-dollar, buying a used car from a private seller will cost the same as buying from a new car dealership.

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