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Old Nov 8, 2006 | 8:07 am
  #5  
simpleflyer
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Join Date: Jul 2002
Location: Canada
Posts: 642
Hang on, I didn't say 'other charges' I said fees of 'related agencies' by which I was referriing to airport fees and taxes that are levied by agencies, fully independent of the airline, *that have authority to levy taxes or tax-like fees* (e.g. airport security taxes, etc.) Fuel surcharges, I agree, are not 'taxes' by the proper definition of the word, and not to quote these intrinsic to the price is misleading. Also, for those cases where the price only applies to a round-trip (as opposed to Ryanair, which sells strictly on a point-to-point basis) the price advertised should be for the full round-trip, none of this 'half round-trip' foolishness.

I also do not dispute that of course, the QUOTE (as opposed to the advertised price) will include the final taxes and fees; however I stick to my point that due to the constant flux of taxes, and regional variation, it is fair for the supplier's price to be ADVERTISED separately (which is not the same thing as not advertising anything about forthcoming taxes, etc. at all.)

Now, just what should be advertised in the way of taxes gets tricky. Consider:

Gizmo sold at Canadian Tire (national hardware store chain): $49.99

HST (Harmonized Sales Tax, meaning Provincial Sales Tax is grouped with the federal GST or Goods and Services Tax; it applies in my province, unlike say Ontario which hasn't adopted HST but where GST of 6 per cent and PST of x per cent applies separately.) - in my province of 14 per cent of $49.99 = $7.00
Total cost in my province = $56.99

In Ontario, proviincial sales tax rates vary from 5 to 12 per cent, depending on the nature of the good or service, so total tax (GST + PST) varies from 11 to 18 per cent (from 5 + 6 or 12 + 6 per cent, respectively) so total cost of same good, even if supplier sticks to a consistent national price policy, could be quite different.

Also, taxes and fees vary constantly, outside the control of the supplier. Example: Until very recently the HST in my province was 15, not 14 per cent hence any advertised prices including said tax then would be similarly misleading (for once, on the high side.)

Airfares get even more complex because GST/HST currently applies only on domestic airfares, not on international or transborder (destination US) ones.

So, in the interest of consistent pricing policy, not to mention logistical realitiess, separate pricing is reasonable, IMO - even given that obviously, Ryanair is subject to different tax structures as it doesn't operate in Canada.

Last edited by simpleflyer; Nov 8, 2006 at 8:13 am
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