Blogs & Comment

Buy before the HST hits?

I was listening to the radio in the car when an ad came on urging listeners to hurry and sign up with a renovation firm before the HST came into effect in Ontario. Beat the 8%, the voice said.
This view assumes that the 8% will be automatically passed onto consumers after July 1. Im not so sure about that.
Once the HST comes into effect, I would guess there is going to be something of a decline in demand in the renovation industry. Many people signed up in 2009 and early 2010 for renovations because of the (now cancelled) home-renovation credit and to beat the HST. When both those incentives have ended, there likely will be a substantial drop in projects.
One would thus expect some price competition to emerge, especially considering the number of renovation outfits that have entered the industry in response to the demand. In fact, I wouldnt be surprised if the discounts in many cases are greater than the 8% tax hike. And the provider wont be in a rush to get the job done, either