Island Morning | Dec 10, 2012 | 9:01

HST - Businesses making Under 30K

Many small businesses on PEI are just finding out they won't have to charge ANY sales tax when the HST comes in April 1st. Currently, their customers must pay the 10 per cent Provincial Sales Tax. But if the small business grosses UNDER 30-thousand dollars a year, the company doesn't have to charge the 5 per cent GST. As of April 1st... those small companies that aren't charging GST now, will have the option of NOT collecting ANY sales tax at all. That could give those businesses a competitive edge. But on the other side of the coin, those businesses will now have to start paying sales tax on items they buy for resale. We hear from P.E.I. Finance Minister Wes Sheridan, and as Island Morning's Pat Martel discovered, some small business owners still can't believe they won't have to charge any sales tax at all.

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