Consumers making big-ticket purchases before N.B. HST hike takes effect

The New Brunswick Government is preparing to implement a two per cent increase to it’s Harmonized Sales Tax (HST) Friday.

In the days preceding the tax hike, some people were out trying to make some purchases, especially bigger ticket items, before the new rate comes into effect.

Andy Lawlor helped his father Bill purchase a vehicle at Fundy Honda in Saint John, prior to the tax hike. The elder Lawlor says the tax increase forces your hand.

“That’s the general idea,” Lawlor said. ‘That’s the straw that breaks the camel’s back.”

Tweet This Click to share quote on Twitter: "That's the general idea," Lawlor said. 'That's the straw that breaks the camel's back."

Andy Lawlor added there are savings to be made before the the HST rises from 13 per cent to 15 per cent.

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“When you’re dealing with newer cars of course up in the thousands of dollars, two per cent can be two or three hundred dollars(in savings),” he said. “It’s a big deal”.

Management at Fundy Honda says the car sales business has been reasonably healthy but there’s been a slight improvement leading into the tax increase.

“Any of our clients that have been considering purchasing a vehicle over say the next four months have probably considered doing it prior to the HST to get that little extra savings in before the change,” said Paul Misfud, the dealership’s director of operations.

Sales are up as well at smaller establishments like Dave’s Appliance Ltd. in Saint John.

Employee Andrew Wilson says some buyers are coming in now to buy appliances months before they’re needed – to get ahead of the tax increase – and a few are even buying several items at once.

“Just purchasing one washer or dryer you’re saving $20, $30 maybe,” bookkeeper Andrew Wilson explained. “But when you get into a $10,000 house lot of appliances there are significant savings.”

The Canadian Taxpayers Federation has been critical of the HST increase from the beginning.

“This HST hike will kill jobs,hurt the economy, make it harder for working families,” Federation spokesman Kevin Lacey said. “The average amount a working family will pay as a result of this HST hike will be about $440, money that they just don’t have.”

The Gallant government estimates the tax increase will bring in about $300 million in revenue.