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Winnipeg

New 'tax on a tax' a result of legislative change

Published: 

GST charged on city tax portion of Hydro bill Jon Hendricks on why the GST is now being charged on the city tax portion of Manitoba Hydro bills in Winnipeg.

If you take a close look at your latest bill from Manitoba Hydro, you may not like what you see -- a new tax.

The tax itself isn't new, it’s the GST.

But last November it started being applied to the city tax portion of your bill, a tax on a tax.

The Canada Revenue Agency tells CTV news it's all thanks to a legislative change made by the Selinger government in 2008.

It moved the taxes on electricity and natural gas from one provincial act to another, and as a result, the CRA says "the city tax is now considered part of the price of the supply of the electricity and therefore subject to GST."