2 February 1999

Ontario Provincial Sales Tax (Non-Commercial)

The following information is from Revenue Canada.

The federal government and the province of Ontario have entered into an agreement whereby Revenue Canada will collect the Ontario Provincial Sales Tax (PST) of 8 per cent on behalf of the province of Ontario. Effective 16 April 1999, residents of Ontario returning to Canada through Ontario customs offices will be required to pay the PST on the value of their taxable purchases that exceeds their customs travellers exemptions. Returning residents not entitled to customs travellers exemptions will be required to pay the tax on the full value of all their taxable purchases. Effective 1 June 1999, in the postal and courier streams, the PST will be collected on the value of all taxable non-commercial goods imported by residents of Ontario and released in Ontario.

The PST does not apply to imported commercial goods. See Customs Notice N-266, entitled "Collection of Ontario Provincial Sales Tax (PST) on Non-Commercial Importations" for further details, including the tariff classification link to all Ontario PST items. Further information is available from Ms. Denise Polesello, at 613-952-9486.