HST exemption provided for services arranged before July 1, 2010
Funeral parlours don’t normally have lineups at their front
doors, but that’s a distinct possibility following the provincial government’s
release of transition rules for the harmonized sales tax.
The rules, designed to ease into the 12% tax that combines the
5% goods and services tax with the 7% provincial sales tax, include an
exemption for funeral services arranged before July 1, 2010 tax implementation date.
“It does appear that pre-arranging may be a consideration that
people would be wise to consider” said Justin Schultz, president of the Funeral
Services Association of B.C.
Schultz, who will be meeting with Finance Ministry, said the
industry has been concerned pre-arranged contracts entered into before July 1
would be hit with a seven per cent increase.
Pre-arranging and paying for funerals is a very common practice,
said Craig McCall Williams, of McCall Brother Funeral Directors in Victoria. “More and more
people are doing that,” he said noting funeral costs can range from $2,000. to “the
sky’s the limit.”
By prepaying your arrangements today you will be giving yourself
and your family peace of mind by having all your decisions made and avoiding
the new Harmonized Sales Tax (HST)
The potential savings for those who plan ahead are substantial:
Today,
funeral services are subject to the 5% Goods and Services Tax.
Consumers
who spend $5,000 on a funeral currently pay $250. in taxes.
When the
HST comes into effect, the total taxes for the same funeral will to rise
to $600.00
By
pre-planning and pre-paying before July 1,
2010,
consumers will save$350 in taxes on the cost of a $5,000. funeral.
Call Squamish Funeral Chapel to find out how you can save hundreds
of dollars on your funeral arrangements
