B.C. may offer more breaks on HST

The B.C. government is spending $1.7 million to finance a province-wide debate on the harmonized sales tax, and will consider offering changes to it before a mail-in referendum is held in June and July.

Finance Minister Kevin Falcon announced the funding in Vancouver Thursday. He said one possibility would be offering to reduce the rate on the provincial portion of the tax, if the public wants that and if it can be done without upsetting the plan to balance the provincial budget.

“I want to make sure that government is committed to a position of improving the HST prior to the vote being made on June 24,” Falcon said.

The province is restricted by its agreement with the federal government that combines the former seven-per-cent provincial sales tax with the five-per-cent federal goods and services tax. That agreement requires the current seven per cent provincial portion of the HST to remain as is until July 2012, but Falcon said if B.C. taxpayers want it changed sooner, he would discuss that with Ottawa.

The B.C. government could also offer further provincial rebates to offset the HST on such things as sports programs, Falcon said. Rebates already apply to gasoline and home energy use in B.C.

The funding includes $500,000 to be divided between the “yes” and “no” campaigns. Former B.C. ombudsman and MP Stephen Owen has been appointed to administer the fund and decide who qualifies to receive a share.

There will be a mail-out to all residents of B.C., including submissions arguing for and against keeping the harmonized tax. A series of town hall meetings will be held at universities and colleges where people can debate the merits of the two tax systems.

The government plans to start sending out mail-in ballots in mid-June, and they must be received by Elections BC no later than July 22. It will be August before the results are known, and the government knows whether to keep the HST or negotiate an end to it with the federal government.

Former premier Bill Vander Zalm’s Fight HST organization, which forced a referendum with a petition last year, released a study last week making a case to reject the HST. Fight HST argues that provinces with HST have higher unemployment and inflation than those that don’t.

The finance ministry countered that low unemployment in Alberta and Saskatchewan is due to their booming resource sectors, not their sales tax systems. It cited reports by the Bank of Canada and others that say the HST “will likely result in a small, one-time increase in the Consumer Price Index.”

The B.C. government has set up a website for HST information here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Hope’s visitor centre re-opens, as tourism revs up in the area

Visitor centre, area tourism businesses open doors as B.C. travel allowed by provincial government

Harrison Festival Society unveils further summer lineup

Children’s concert, drum making on deck for July 15 and 18

Fraser Valley Real Estate Board says sales double in June, buyers returning to market

Month’s property sales rebound 113% over May’s sales, 32% over June last year

Return of the Jedi – and the Chilliwack Cultural Centre art gallery

The O’Connor Group Art Gallery re-opens today with Chris Woods’ Star Wars themed paintings

Fraser River may surge one more time next week

It’s unusual for the Fraser River to peak twice in one season, let alone three times

The pandemic is widening Canada’s workplace gender gap

Gender pay gap is incentivizing fathers to work while mothers watch children, a new B.C. study has found

Investigation clears RCMP in incident where man fell from Langley overpass

‘Officers acted commendably and placed themselves at risk’ police watchdog report finds

Ex-Okanagan Mountie forfeits 20 days’ pay after sexual misconduct review

A former Vernon RCMP constable made sexual comments, grabbed genitals of male officer in two incidents 10 years ago

Rural Chilliwack residents asked to stay indoors, lock doors amid heavy police presence

Heavy police presence in rural Chilliwack neighbourhood as RCMP contend with ‘serious situation’

Councillor Doug Elford Surrey’s acting mayor during McCallum’s “health concern” absence

Mayor issued a statement Tuesday night saying he’ll be back on the job by Monday

Man found dead on Okanagan trail identified as Hollywood actor

GoFundMe campaign launched for man found dead at summit of Spion Kop

3 people dead in Prince George motel fire

Fire personnel believe the blaze was suspicious although investigation in early stages

B.C. sets terms to review police, mental health, race relations

MLAs to recommend Police Act changes by May 2021

Most Read