Lesson · Grade 7 · Mathematics
Sales tax in BC: GST and PST
- Grade 7
- Mathematics
- 1 min 21 s
- British Columbia
- BC7-MA-73
A $50 skateboard goes onto a receipt, and the video works out 5% GST (0.05 × $50 = $2.50) and 7% PST (0.07 × $50 = $3.50), both from the price before tax. The two taxes add up to $6.00, which is also 12% of $50, so the total at the checkout is $56.00.
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In one sentence
The question this lesson answers
In British Columbia, a skateboard has a price tag of 50 dollars.
How much do you really pay at the checkout?
Transcript
What the lesson says
In British Columbia, a skateboard has a price tag of 50 dollars.
How much do you really pay at the checkout?
In BC, most things you buy have two sales taxes added to the price.
GST, the Goods and Services Tax, is 5 percent.
PST, the Provincial Sales Tax, is 7 percent.
5 percent of 50 dollars is 0.05 times 50, which is 2 dollars and 50 cents.
7 percent of 50 dollars is 0.07 times 50, which is 3 dollars and 50 cents.
Both taxes are worked out on the price before tax.
Together, the two taxes add up to 6 dollars.
To check, add the rates: 5 percent plus 7 percent is 12 percent.
12 percent of 50 dollars is also 6 dollars.
Add the tax to the price: 50 dollars plus 6 dollars is 56 dollars.
So the skateboard costs 56 dollars at the checkout.
In BC, you pay the price plus 5 percent GST and 7 percent PST.
Curriculum
Where this fits
- British Columbia, Grade 7
Mathematics, Financial literacy: financial literacy: financial percentageBC7-MA-73
The outcomes and strands follow the British Columbia curriculum.
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