In 2009, the ÎÚÑ»´«Ã½ government was elected to lead the province out of the recession, put people back to work and create economic security.
I want to tell you how we're doing just what you elected us to do. I would like to cut through the clutter and misinformation and share with you some of the facts.
Last Thursday, Elections ÎÚÑ»´«Ã½ decided it would be inappropriate for the government of ÎÚÑ»´«Ã½ to present directly to the citizens who elected it, through a flyer, why the harmonized sales tax is in the public interest and how that tax is part of the government's plan to foster a strong economy that generates jobs, investment and prosperity.
This, despite the myths and misinformation being thrown about by people using the shift to the HST to further their political agendas.
British Columbians deserve the facts about the HST.
You need to know you won't pay a penny more tax on many products and services, including basic groceries, health and dental services, child-care services, resale housing and prescription drugs.
You won't pay a penny more tax to heat your home, gas up your car or to buy children's-sized clothing, diapers, books and many other products. You also won't pay a penny more tax on the products you currently buy that are subject to PST.
There won't be any more tax on about 80 per cent of British Columbians' consumer expenditures -- which means you won't pay any more tax on the majority of the goods and services you choose to purchase with your hard-earned money.
Thursday's passing of the Consumption Tax Rebate and Transition Act eliminates the burdensome provincial sales tax and introduces a quarterly payment for lower-income earners as well as point-of-sale rebates, which are like PST exemptions, for all British Columbians.
The legislation fulfils our agreement with the federal government and paves the way to implement the streamlined HST on July 1.
The HST is a key part of our overall approach to develop a strong economy.
Currently, businesses pay PST on almost everything they buy to run their businesses, then pass along much of the PST to consumers in their prices. You, the consumer, pay PST on the final price -- including all the embedded PST.
Experts agree that by reforming our tax system and removing the embedded PST, businesses will be able to invest, expand, hire more employees, become more productive, pay higher wages and offer products at more competitive prices, both internationally and for ÎÚÑ»´«Ã½ consumers.
With a more competitive tax system comes investment, jobs, prosperity and a greater ability to pay for the kinds of services that British Columbians have come to expect and depend on: Health care, social services, environmental protection, and education for our leaders of tomorrow.
Still, there will be additional tax on some products and services. For that reason we are acting to protect consumers, especially those with low and modest incomes. About 1.1 million British Columbians will receive up to $230 annually through an HST credit, paid quarterly starting in July.
We have also increased the basic personal amount tax credit to $11,000, which means up to $80 back in your pocket and ensures that those earning up to $18,800 pay no provincial income tax. British Columbia has the lowest provincial income taxes in ÎÚÑ»´«Ã½ for individuals earning up to $118,000.
We are also providing a rebate of the provincial portion of the HST of up to $26,250 when you buy a new-built home. On average, purchasers of new homes up to $525,000 will not pay any more tax than they do now. ÎÚÑ»´«Ã½ is also providing a rebate for new rental housing. There will be no HST payable on a pre-owned home.
There has been some confusion over the HST general transitional rules. The HST will generally apply to payments made on or after May 1 for products and services provided or performed on or after July 1. As an example, if you purchase a piece of furniture today that won't be delivered until after July 1, you will pay the 12 per cent HST. Before May 1 you would have paid seven per cent PST and five per cent GST -- either way, it's 12 per cent.
Eliminating the antiquated provincial sales tax ensures ÎÚÑ»´«Ã½ businesses will be more competitive, and that we will continue to see an increase in jobs, investment, productivity and economic growth.
The government has a responsibility to inform British Columbians about the services, programs and policies you depend on.
We stand behind our public awareness campaign as a means to reach out to British Columbians to help you understand the facts about HST. Go to gov.bc.ca/hst to learn more.
