B.C. To Harmonize PST and GST
By 250 News
Thursday, July 23, 2009 10:23 AM
Prince George, B.C.- Saying it is a major measure to simplify the tax system and pumps $1.6 billion in transitional funding to the B.C. economy, the Province has decided to harmonize the provincial sales tax with the GST.
This move to a harmonized tax rate, ( HST) will take effect July 1 of 2010.,
“”This may not be an easy undertaking,“ says Premier Gordon Campbell who adds it is the right thing to do .
Minister Finance, Colin Hansen, says that in the past, B.C. shied away from harmonizing the taxes because the rate was set by the Federal Government and Province’s had to charge 8% provincial tax. The agreement now, will allow B.C. to set it’s own Provincial tax rate, so combined with the GST, the province B.C. will pay the lowest HST rate at 12%.
There will still be point of sale exemptions for businesses, and rebates ;
* Fuel o Gasoline and diesel motor fuels, including any biofuel components.
* Other items
o Books, children's sized clothing and footwear, children's car seats and car booster seats, diapers and feminine hygiene products.
* Housing o A partial rebate of the provincial portion of the HST of up to $20,000 on all new housing.
* Low income tax credit o A refundable B.C. HST Credit to help protect low-income individuals.
There will be rebates for municipalities, charities and eligible non-profit organizations to avoid tax increases for these sectors. And there will also be temporary restrictions of input tax credits for certain purchases by businesses with taxable sales over $10 million and
financial institutions.
* Fuel o Gasoline and diesel motor fuels, including any biofuel components.
* Other items
o Books, children's sized clothing and footwear, children's car seats and car booster seats, diapers and feminine hygiene products.
* Housing o A partial rebate of the provincial portion of the HST of up to $20,000 on all new housing.
* Low income tax credit o A refundable B.C. HST Credit to help protect low-income individuals.
There will be rebates for municipalities, charities and eligible non-profit organizations to avoid tax increases for these sectors. And there will also be temporary restrictions of input tax credits for certain purchases by businesses with taxable sales over $10 million and
financial institutions.
“The introduction of the HST is the single biggest thing we can do to stimulate our economy” says the Premier. Who says when you look at industry “The elimination of those imbedded costs will drive investment production and it will drive jobs in British Columbia.” He says this move will dramatically reduce business costs ($1.9 billion).
Minister of Finance Colin Hansen says the HST will encourage jobs and economic growth “Throughout the weeks to come we look forward to working with British Columbians on implementation of the HST.”
The Federal Government has agreed to have provincial employees who work on the existing Provincial Sales tax, moved over to the federal department.
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