HST Bill Underway
By 250 News
Tuesday, March 30, 2010 02:38 PM
Victoria - The introduction of the Consumption Tax Rebate and Transition
Act proposes to eliminate the Provincial Sales Tax (PST) and the Hotel
Room Tax, streamlining the regulatory burden on business and supporting
the transition to the HST, announced Finance Minister Colin Hansen today.
"Our current provincial sales tax is a substantial and complex statute
that costs B.C. businesses millions of dollars a year in administration
and compliance," said Hansen. "By reforming our tax system and introducing
the HST, businesses will be more competitive and our province will see an
increase in investment, productivity and economic growth."
Fulfilling the Province's commitment under the Comprehensive Integrated
Tax Coordination Agreement with the federal government to wind down PST by
July 1, 2010, the new Consumption Tax Rebate and Transition Act eliminates
the seven-per cent PST and introduces HST-related measures designed to
mitigate the impacts of the HST on British Columbians.
Mitigation measures include:
* A B.C. HST credit to help low- and modest-income families.
* A point-of-sale rebate for the seven-per cent provincial portion of the
HST on motor fuels, books, children's-sized clothing and footwear,
children's car seats and booster seats, children's diapers and feminine
hygiene products.
* A provincially administered rebate and credit for the provincial portion
of HST payable on energy purchased for residential use.
Consistent with the tax treatment of the private sale of vehicles, boats
and aircraft in other HST provinces, the act includes the continuance of
the tax, but at a rate of 12 per cent. The act also includes amendments to
repeal the Innovative Clean Energy (ICE) Fund Levy on residential and
commercial energy, the $5 battery levy, the passenger vehicle rental tax,
the surtax on motor vehicles and multijurisdictional vehicle tax.
The act also eliminates the provincial portion of the hotel room tax, but
continues the two per cent additional hotel room tax levied on behalf of
local governments, regional districts and destination marketing
organizations to raise revenue for local tourism marketing.
To illustrate the importance of the high and growing cost of health care
for British Columbians, the act includes a requirement to annually table a
health-care funding plan and report to show health-care expenditures and
revenues from the HST, tobacco taxes, Medical Service Plan (MSP) premiums,
federal health-care transfers and lottery revenues from the Health Special
Account.
Consumption Tax Rebate and Transition Act - Supporting the Transition to
HST
The amendments:
* Eliminate the PST and various levies, such as the ICE levy on
residential and commercial energy.
* Provide transitional provisions to coordinate the elimination of the PST
with the implementation of the HST.
* Eliminate the provincial portion of the hotel room tax and provide
transitional provisions to co-ordinate the elimination of the provincial
tax with the implementation of the HST. The amendments will not affect the
additional hotel room tax levied on behalf of local governments, regional
districts and destination marketing organizations to raise revenue for
local tourism marketing.
* Introduce a provincial credit for the provincial portion of the HST
payable on residential energy.
* Establish point-of-sale rebates for the provincial portion of the HST
payable on motor fuels and certain other items.
* Continue the provincial tax on private sales of vehicles, boats and
aircraft, but at a rate of 12 per cent.
* Introduce a refundable B.C. HST Credit of $230 per person targeted to
low- and modest-income individuals and families. The new credit will be
provided together with the GST and climate action credits effective July
1, 2010.
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Posted by: Oldun on March 30 2010 4:11 PM