Quandaries and Queries


I was absent on the day that my teacher taught the class how to find the GST and PST of items. I sort of understand that GST is 7% and PST is 7.5%, but our teacher said that we shouldn't combine the two to find the total amount... I'm really confused, so can you please help me? I would really appreciate it! :o)

Mallory (Grade 7)

Hi Mallory,

In some provinces you can just combine the two: If you buy an item $100.00, you have to pay $7.00 in goods and services tax and $7.50 in provincial sales tax for a total of $114.50, including $14.50 in tax. In other provinces, there is provincial sales tax ON the goods and services tax: The $100.00 item would cost $107.00 with GST, on which you charge 7.5% PST for a total amount of (1 + 0.075)*107.00 = $115.025 (=$115.03 after rounding up the half penny). How much is that in total tax?


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