What will rise in price in Canada between 2021 and 2022?

Because of the new taxes, the prices of some goods may go up.

Canada's federal budget unveiled in April contains, among other things, a number of new taxes that are likely to affect the cost of certain goods. For some of them, prices have already started to rise. What will you have to pay more for in the near future?

Digital services

A digital sales tax is being introduced from 1 July 2021.

This means that international digital platforms will pay sales and services tax (GST/HST). This includes streaming services such as Netflix, Amazon Prime Video, Disney+, music streaming services such as Spotify and Amazon Music Unlimited, and mobile app platforms such as Google Play.

Although companies will have to pay taxes, they are likely to compensate by raising prices. For example, Netflix has already confirmed that it will increase subscription fees.

The taxes will not affect Canadian companies and likely the Apple App Store, Apple Music and iTunes sites because Apple voluntarily imposed the tax on its services in 2019.

Luxury goods

In early 2022, expensive items will begin to be taxed: cars and private jets worth more than $100,000 CAD, and boats worth more than $250,000 CAD.

Goods for smoking

Starting in 2022, the price of vaping products could increase due to an excise tax that would affect almost all products, including vape liquids, regardless of whether they contain nicotine. However, the cost of cannabis is unlikely to change because these products are already taxed.

The budget also assumes an increase in excise tax on tobacco products. For manufacturers it will be $4 CAD per pack of 200 cigarettes.