The Harmonized Sales Tax (HST) is a consumption tax that combines the federal Goods and Services Tax (GST) and the provincial sales tax (PST) into a single tax. This system simplifies the tax process for businesses and consumers by having one rate instead of two separate ones. The HST is applied to most goods and services sold in participating provinces in Canada. The HST is designed to streamline tax collection and improve efficiency. It is collected by the federal government and then distributed to the provinces. This tax helps fund public services and infrastructure, making it an essential part of the Canadian economy.