Food under $4 to be exempt from Ontario HST

TORONTO — Food and beverages sold for under $4 in Ontario will be exempt from the 8% provincial component of the new harmonized sales tax, a government source said Thursday.

Ontario Finance Minister Dwight Duncan and Revenue Minister John Wilkinson are expected to announce the changes at an event at a Tim Hortons in Etobicoke, Ont.

The government has already said books, children’s clothing and footwear, diapers, car and booster seats and feminine hygiene products will be exempt from the provincial component of the new tax.

The HST, which merges the eight per cent provincial sales tax with the 5% GST is scheduled to come into effect July 1, 2010.