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BUSINESS

Expect to pay more
for some items Jan.

TO KEEP vour finances
under control, plan your
spending — and saving —
carefully over the next six
months as we ease into the
new world of the Goods
and Services Tax (assuming
the GST comes into effect
as proposed next Jan. 1).

Schedule a major overhaul of
your car or your finances by
year-end and save major bucks.
Delay certain purchases to the new
year and, depending on market
conditions, you could save more.

Last week, Elio Luongo review-
ed the effect of the proposed
seven per cent GST on salaries
and wages (nol taxed), employee
benefits (some are taxed), housing
(GST cn new homes only with a
maximum $8,750 rebate — that
would be on a $350,000 home),
tent (not taxed), groceries (no
GST on the basics), restaurant
food and drink plus take-out food
(all taxed) and cars (taxed if
bought from a dealer).

“Because in many cases the
GST replaces the existing federal
sales tax (FST) — and the GST is
lower — the total you pay on
some goods could go down ...
theoretically,’’ said Luongo,
senior tax manager with Peat
Marwick Thorne, chartered ac-
countants.

“Other items, previously untax-
ed, will cost you more, again
depending on competition and
other factors.’””

Starting in 1991, you will see
your cost of living go up the most
with the GST you will have to pay
on previously untaxed services.

Labor charges of $200 on your
car repair bill? Add another $14.
You owe friends a special dinner
out and pian to spend $150? Plan
for another $10.50. Haircut costs
$157 Now you'll pay $16.05. Ex-
pect a bill for $500 for financial

Worn

Correction Notice
Gear Up For Schoo! Flyer
Appearing Aug. 22, 1990

Page 11 — Acme Blunt End Jr.
Scissors 5.98, Semi-painted
Scissors 6.98 will not be available.
We are sory for any inconve-
nience this may have caused our
customers.

Michael

DOLLARS AND SENSE

planning, accounting or legal ser-
vices? Expect to see an extra °*$35
GST” on the bill.

Clearly you can save money if
any of these events are likely to
take place relatively early in 1991
and could just as easily occur by
year-end — provided you aren't
going to run up a 20 per cent (an-
nual cost) credit card balance for
more than four months to save
that seven per cent.

Just remember to set up any
necessary appointments soon:
those last weeks of December will
be very busy.

You pay no GST on municipal
transit or on highway system ferry
fares. But you will pay GST on
other transportation services pro-
vided in Canada. Air travel to the
continental U.S. will also be tax-
able — an incentive for some to
drive across the border to catch a
flight.

You will pay GST on hydro,
natural gas, phone and cable bills,
and on movie, theatre and concert
tickets.

Some services will be tax ex-
empt: health care, educational,

child care, financial services like
banking and brokerage fees.

But “tax exempt’? means the
supplier of these services will col-
lect no refund of the GST paid to
tun the business. So the supplier
will probably pass this extra
(GST) cost along to you. You
won't pay any GST but the price
of the service could well rise seven
per cent anyway.

Items like prescription drugs
and eveglasses will be zero-rated.
That means the supplier can col-
lect a refund of GST paid to run
the business. So the price of the
item to you should not increase.

It's anybody’s guess what will
happen to the price of ordinary
consumer goods like appliances,
jewelry, sporting goods and the
rest. Although the GST is less
than the FST it replaces, the mar-
ket will determine whether prices
will rise or fall in the new year.

However, you can count on
paying more for items like stamps
and clothing, which now have no
FST. So you might like to buy
some clothes before year-end. Of
course, there are other factors:
free trade, for example, might
eventually lead to lower prices for
clothing made in the U.S.

You will not pay the GST on
fines and penalties (like parking
and speeding tickets). But you will
pay the GST when you buy lottery
tickets (although winnings are not
taxable).

Pari-mutuel betting on horse
races and gambling events spon-
sored by charities and non-profit
organizations are exempt from the
GST.

There will be no GST when you
sell something privately. Nor is
there any GST when you buy gift
certificates.

When you use a coupon or
otherwise get a discount, GST will
be charged only on the price you
actually pay.

Dr. Alan Haynes & Associates

et = SATISFIED WITH YOUR WORK?
FIND YOUR RIGHT JOB NOW.

Assess your career strengths: Increase your employment and
promotion opportunities. Objective and detailed report.

FOR FREE DETAILS, CALL NOW 983-2111 or 732-5568.
*& x x Your Complete Employment Counselling Service * * x

Were serving you a whole world of excitement at this
year's PNE. For example, Amazing Thailand is a 40,000
square foot oasis where you can experience all the exotic
sights, sounds, scents and tastes of this gorgeous kingdom.
CIncluding those wild tuk-tuk taxis!)

Take a close look at Thai silk, leather, silver and other
traditional crafts. Sce the country’s new industries in Thai

High Tech. Enjoy stage shows with glamorous dancers. Watch
silk being extracted from cocoons. See artisans hand-setting

Aw.

jewels (jewels you can buy!). Then top off your tour with an

authentic Thai meal...

fit for the King of Siam!

Wednesday. August 22, 1990 ~ North Shore News ~- 19

ROYAL LePAGE =

SHARE IN SUCCESS

If you are licensed or soon to be Incensed with a sincere desire for
early success and would like an opportunity to be part of our North
or Wes! Vancouver Sales Team

We invite you to investigate the TRAINING, REWARDS and
SUPPORT offered by Royal LePage

Call:
Ron Bailey, Manager, West Van. 925-1441

Satnam Sidhu, Manager, North Van. 988-2022

VANCOUVER, B.C., CANADA