Harmonized tax comes under fire

Richard Rolke - Vernon Morning Star Published: August 20, 2009 6:00 PM

A high-profile politician warns there could be political ramifications for anyone who supports the harmonized sales tax.Adrian Dix, NDP MLA for Vancouver-Kingsway, was in Vernon briefly Thursday to protest the Liberal government’s plan to meld the provincial sales tax with the federal goods and services tax.“It’s a tax transfer to middle income people who can’t afford it,” he said.

And Dix directed most of his comments towards Eric Foster, who was elected as the Liberal MLA for Vernon-Monashee in May.“There’s not a chance he would have been elected if he said he was bringing in the HST,” said Dix.“We have to put pressure on him to vote against it in the Legislature — to vote with the people of Vernon.”The NDP recently launched a petition against the HST which will result in an extra seven per cent levy on products and services currently exempt from the PST.“It will have a significant affect on the tourism and business climate,” said Dix.

The new levy is expected to be implemented July 1, 2010.Dix questions why there was no discussion about the HST during the election campaign.“This proposal has been around for years,” he said.“The premier’s Progress Board briefed them on it before the election.”

However, Foster disagrees with Dix’s interpretation of events.“It wasn’t on the radar. There was no discussion,” said Foster of government policies before and during the election.However, he says the issue surfaced after May because the federal government was pushing the HST concept and offering B.C. $1.6 billion over two years if it came on board.“It’s the single biggest move we can take to give business a competitive advantage and it will help the economy,” he said.“Our commitment during the election was to help the economy.”Foster says one tax will simplify the process for small business and it will lead to cost savings for some sectors, such as $150 million for forestry.Foster believes the positive aspects of the HST have been lacking during any discussions and the government needs to tackle that situation.“People are getting misinformation.”