Why Toilet Paper Is Still Taxed In Canada

The question of whether toilet paper is taxed in Canada has been a lingering enigma for many Canadians. While some believe it’s a necessity that should be exempt from taxes, others argue that it’s a luxury item that should be subject to taxation. In this comprehensive guide, we’ll delve into the intricate world of Canadian taxation and uncover the truth about the tax status of toilet paper.

The Goods and Services Tax (GST)

In Canada, the Goods and Services Tax (GST) is a federal tax applied to most goods and services purchased by consumers. However, certain items are exempt from GST, including basic groceries, such as food and beverages.

Toilet Paper: A Basic Grocery Item?

According to the Canada Revenue Agency (CRA), toilet paper is considered a basic grocery item and is therefore exempt from GST. This means that when you purchase toilet paper in Canada, you do not pay any federal sales tax on it.

Provincial Sales Tax (PST)

In addition to the GST, some provinces in Canada also impose their own sales taxes, known as Provincial Sales Tax (PST). The PST rates vary from province to province, ranging from 5% to 10%.

PST on Toilet Paper

In most provinces, toilet paper is exempt from PST. However, there are two exceptions:

• British Columbia: Toilet paper is subject to a 7% PST in British Columbia.
• Nova Scotia: Toilet paper is subject to a 15% PST in Nova Scotia.

Why is Toilet Paper Exempt from GST?

The rationale behind exempting toilet paper from GST is that it is considered a necessity for maintaining personal hygiene and sanitation. It is not a luxury item that can be easily substituted with other products.

Takeaways: The Tax-Free Status of Toilet Paper

Based on the information provided by the CRA, toilet paper is considered a basic grocery item and is therefore exempt from GST in Canada. However, in British Columbia and Nova Scotia, toilet paper is subject to PST. It’s important to note that this information may change in the future, so it’s always advisable to consult the CRA’s website for the most up-to-date information.

What You Need to Learn

1. Why is toilet paper taxed in British Columbia and Nova Scotia?

The decision to tax toilet paper in British Columbia and Nova Scotia is a provincial matter. Each province has its own tax laws and can choose to exempt or tax certain items as they see fit.

2. What other items are exempt from GST in Canada?

In addition to toilet paper, other basic grocery items that are exempt from GST include:

• Food and beverages
• Clothing and footwear
• Prescription drugs
• Medical devices
• Books and magazines

3. How can I find out if an item is taxable in Canada?

You can check the CRA’s website or consult with a tax professional to determine if a particular item is taxable in Canada.