An economics professor has said that a new tax that went into effect on Thursday in the Canadian provinces of Ontario and British Columbia has led to "a lot of confusion."

Canwest news service has said that provincial citizens found themselves paying more for a number of products and services Thursday, Canada Day, as a 13 percent tax known as the Harmonized Sales Tax went into effect. Goods and services previously exempt from provincial sales tax in Ontario, from haircuts to theater tickets to gasoline, will cost more.

Analysts further said that in the meantime, the provincial government has cut personal income taxes, mailed HST rebate checks and ushered in a seniors property tax cut beginning Canada Day. Some prices would go up and some down under the new tax.

Herbert Schuetze, an economics professor at the University of Victoria in British Columbia, said, "I think there's a lot of confusion. It's not surprising, because it's fairly multi-faceted."

In Ontario, the tax on gasoline will jump from 5 percent to 13 percent. The same is true for home heating costs as the cost of natural gas and oil is now subject to the new tax.

David Schlesinger, head of indirect tax at audit company KPMG, said, "The truth is, most people don't know exactly what is subject to the new tax and what isn't. But it's the items that people spend on regularly where they're really going to see the difference." (With Inputs from Agencies)