BC Greens Call For Reducing HST To 10%

August 21, 2009 / For Immediate Release

Party Supports Combining GST and PST ~ Seeks Debate, Amendment and a Free Vote

Victoria, BC – “If BC Greens were in government, we would bring the issue of combining the GST and PST to the Legislature for respectful debate, amendment and a free vote by all MLAs so they could represent the wishes of their constituents’” said Green Party Leader, Jane Sterk. “Greens actually support combining the GST and PST but we also believe fundamental decisions like this ought to be made in the Legislature not by the Premier.”

In 2004 the Green Party of BC adopted a policy supporting a harmonized sales tax (HST) after consulting with small business organizations that said a harmonized tax would help them reduce costs and make doing business in BC easier. Support for the harmonized collection of the two taxes can be found in Green Book 2009 - 2013. “We believe reducing red tape is a way for government to stimulate the economy and simplifying taxation systems represents a step in the right direction” Ms. Sterk explained. “We are concerned about the reduced tax exemptions that will result from harmonization. “The current PST exemptions have rewarded people for buying energy efficient products and that has helped the green industry sector grow. The Green Party would like to see the current Liberal government work with the federal government to provide HST exemptions for products and services related to reducing greenhouse gases. As a governing party, we would have demanded that the HST be used to promote greener technologies.

“Greens think the single tax can reduce the cost of collection and the incidence of double taxation. Currently, some things that people buy include a hidden double tax because companies purchase components on which they pay PST and they have to build that 7% into the price of the final good or service. Not only is that 7% passed on to consumers as part of the price but they are also charged PST on the total. Under tax harmonization, businesses can claim back that first round of PST and reduce costs to consumers.

“We don’t believe Minister Hansen’s claim that the HST will not increase provincial revenues, because new sectors, such as consultants and services industries like accounting, hair dressers, consulting firms of all kinds, and restaurants will have to apply a tax where they have not before. Consumers will bear the brunt of the additional tax on previously exempt goods and services. “The Green Party of BC calls on the Liberal government to reduce the combined tax to 10%. This would reduce red tape for business and keep the overall tax burden down,” concludes Sterk.