Coldstream cuts costs in preparation for tax transition

By Jennifer Smith - Vernon Morning Star Published: October 07, 2012 1:00 AM Coldstream is hoping to cash in on some savings before B.C. goes back to its old taxation system. With the HST being eliminated April 1, 2013, the province will transition back to the PST/GST system. HST is 12 per cent, GST will return to five per cent and the PST will return to seven per cent. Therefore the same 12 per cent will apply to most goods and services, but in a different format. “One of the concerns with going back to the GST/PST model is the additional cost to our operations,” said Trevor Seibel, Coldstream’s director of financial administration. The district is currently able to recover 85 per cent of the HST paid, but will only be able to recover 41 per cent of the GST/PST. “It’s going to be a big impact to us.” Therefore the district is hoping to push planned vehicle and equipment replacements up before the HST is eliminated. “What we need to do is look at doing it in February/March in order to mitigate some of the costs,” said Seibel of a $90,000 item, which would cost the district an additional $4,724 if purchased when the GST/PST is back.
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https://coldstream.civicweb.net/Documents/DocumentList.aspx?ID=2418 (p.95-96)