Government announces changes to HST rebate for books containing CD-ROMs

NLIS 4
August 21, 2006
(Finance)

Finance Minister Loyola Sullivan is pleased to announce today that as of September 1, 2006 books including CD-ROMs will be rebated the provincial portion of the Harmonized Sales Tax (HST).

Currently books are subject to a point of sale rebate equal to the eight per cent HST component.

Books packaged with CD-ROMs are a relatively new product, and did not previously qualify for the rebate. The rebate is being expanded to include the increasing number of books packaged with CD-ROMs, especially text books. The inclusion ensures books packaged with CD-ROMs receive the appropriate tax treatment and are treated the same as printed books without CD-ROMs.

"Newfoundlanders and Labradorians who purchase these materials do so usually for educational purposes," said Minister Sullivan. "We are happy to ease some of the burden with this tax relief."

The rebate will apply to the reduction of the provincial portion of the HST and be applied at the cash register if:

a printed book is packaged with a CD-ROM and if the material on the CD-ROM supplements and is integrated with the book; and for

products specially designed for students enrolled in a qualifying course consisting of printed a book packaged with a CD-ROM, and/or access to a web site, containing related materials.

"Our technology is changing and children and adults alike are learning in different ways," said Education Minister Joan Burke. "It is important that we not only keep pace with new technology, but ensure it is accessible. The new tax exemption on books with CD-ROMs complements government's recent investment of $6 million for computers and state of the art technology equipment."

The coordinated HST change is also effective in Nova Scotia and New Brunswick on the same day � September 1, 2006.

Media contact: Deborah Pennell, Communications, (709)729-6830, 685-6612 or deborahpennell@gov.nl.ca

2006 08 21 10:15 a.m.

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