New Stewardship Fees will make US prices more attractive

I have recommended in this blog that fellow CBS’ (cross-border shoppers) compare all costs when comparing prices down south. One of those has been the “Stewardship Fees” read TAXES that are charged up front for recycling of electronics, tires, paint cans etc. Well get out your calculators they are going up.

On TV’s 29″ or larger fees are increasing from $27.60 to $39.50. that’s 10% more on a $395.00 set. Good new for those of us purchasing a “floor standing” Photocopier though, those fees are going down.

BUT WAIT!

Fees charged by Retailers – If retailers choose to recover this cost by passing it on to their customers in the form of higher prices or as a separate charge on the customer’s invoice, it forms part of the fair value of the taxable product and/or service provided and is subject to HST at a rate of 13 per cent. So $39.50 becomes $44.64

http://www.ontarioelectronicstewardship.ca/sites/all/files/pdf/consumers/ehf_consumer-may1.pdf

And it’s not just in-your-face fees; until March 31, agriculture and off-road tires had a maximum fee of $250, and most were under $100. Starting April 1, fees are now based on weight, and range from $5.88 for tires weighing less than 15 kg, up to $1,311 for tires that weigh over 1,200 kg. In one example, the fee on farm equipment tires rose from $15 to $353.00 Do you think the farmer is going to eat, no pun intended, these additional costs or will they be passed on to you?

john deer

Ontario charges $1,646 for one tire for a Deere 9770 combine, compared with $210 in British Columbia, $90 in Saskatchewan, $54 in Newfoundland, $24 in Manitoba and Prince Edward Island and zero in other provinces. Maybe we’ll start seeing farmers cross-provincial shopping!

Read more: http://london.ctvnews.ca/ontario-consumers-face-higher-eco-fees-for-big-televisions-new-phones-1.1223814#ixzz2RtLCFxhQ

Light at the end of the tunnel?

This just in – 

http://www.thestar.com/news/canada/2013/04/08/ontario_to_revamp_eco_fees_in_coming_weeks_says_bradley.html

Environment Minister Jim Bradley said Monday that new legislation he’ll introduce within weeks will ban companies and retailers from charging the recycling fees separately.

“It’s a cost of doing business … there’s no need to be plunking it on as a separate fee as though it’s some kind of penalty,” Bradley told reporters.

alfHA

Anybody willing to take bets on this one? I can just see retailers absorbing a 10% fee on $400.00 TV that they make 5% on.

About 2sidesof49

This Blog is for all Canadian Cross-Border Shoppers wanting to maximize their returns on their U.S. shopping trips. Visit 2sidesof49.com for tips and tricks and links to our partners websites, blogs and products. Also check out my book The Canadian Cross-Border Shopping Guide - guaranteed to save you money!
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