December 3/07 4:40 am - Ontario PST Exemption on Bikes & Accessories a Gift for this Holiday Season
Posted by Editor on 12/3/07
Ontario PST Exemption on Bikes & Accessories a Gift for this Holiday Season
Just in time for the Christmas season, bikes with a price tag of less than $1,000, bike helmets and select bike safety equipment are now exempt from the Ontario Provincial Sales Tax (PST), beginning December 1st.
At first glance, tax relief for bikes when there's snow on the road seems odd, but as the Bicycle Trade Association of Canada (BTAC) and your local bike retailer will tell you, pre-Christmas is the second largest sales period for bikes.
"Sales at this time of year are higher due to the Christmas season, since this is when a lot of kids get their first bikes," says Pete Lilly, President of the Bicycle Trade Association of Canada. "While kids will be getting the new bikes, the McGuinty government's sales tax exemption on bikes and accessories is a gift to parents."
The tax exemption will save consumers approximately $25 million each year. It is also expected that this move by the Ontario government will get kids more active, as well as encourage others to spend more time outdoors, while easing congestion on the roads.
Mr. Lilly continues, "Your local specialty bike retailer is really about much more than selling you a bike. A good bike shop is part of your community - it's a place that not only equips you, but also inspires you to move on your own power. And the more you ride, the stronger and healthier you get, the less pollution and greenhouses gases you generate, and the more fun you have."