03-30-2013 05:17 PM
Effective April 1, 2013
British Columbia goes from HST to GST... Back to GST = 5 %
Prince Edward Island becomes an HST Province with HST = 14 %.
03-30-2013 06:30 PM
We in BC can hardly wait. It was a hard fight, but we did win eventually.
03-30-2013 06:50 PM
" but we did win eventually"
???
What exactly did you win?
The GST is 5%
The PST is back at 7% for most goods and services. A bit higher for accomodations, expensive cars, etc....
For a total of 12% (or more) which is the same as HST
http://www2.gov.bc.ca/gov/topic.page?id=6CCC4045EFE147D287DA0BF90D004182
In the meantime, business costs will go up which will make BC businesses less competitive with other areas of Canada.
03-30-2013 07:22 PM
What exactly did you win?
As a recent longstanding resident of B.C., this was one of those extremely rare political cases where the win was a matter of principle, rather than merely economics.
Gordon Campbell (former premier, since ousted) promised loudly during his election campaign that he would never institute the HST. People believed him and voted for him, shortly after which his government brought in the HST.
Although the HST, it is true, wasn't any higher than the combined PST and GST, there were big problems with it, from the public's point of view: (a) Campbell had lied; (b) the changeover was costly and time-consuming for many businesses, as entire accounting systems had to be revamped; (c) many exemptions that people had got used to and were important to many, would disappear; and (d) people feared that once the taxes were blended it would be easy for the provincial government to increase the rate without further ado (which is what has happened in other provinces, my current home of Nova Scotia included).
The people were furious, the press shredded Campbell like so many ferocious hyenas, and his party turned on him. Ultimately Campbell made a rather ignominous retreat, with a disingenuous claim of "retirement" from public office that fooled nobody. Quite an entertaining time was had by all.
Christy Clark (I can never recall how to spell her name) promised to turn the HST clock back, has now done so - doubtless in the hope of being re-elected, although also doubtless at a huge cost to the provincial treasury, not to mention all those businesses who now have to change their computerized accounting systems again. But -- the people are vindicated. So, yes, I can understand those in B.C. feeling they've won a victory, even if Pyrrhic and fleeting.
It's funny -- the populace forgave Campbell for his drunken Hawaiian embarrassment, complete with mug shot, but they couldn't forgive him this lie.
03-30-2013 07:28 PM
"the win was a matter of principle, rather than merely economics. "
I understood that part.
The question is : was it really a "win"
Did the province not lose money in the de-harmonization process?
I also understood that most businesses in BC are rather unhappy with reverting to the old PST system, losing most of the ITCs associated with HST, which may lead eventually to losses of opportunities and jobs (that is not political rhetoric; just basic facts of running a business).
Fighting on principles is important but, at what cost?
03-30-2013 07:33 PM
I should add, for those who may be shaking their heads at these unfathomable B.C.'ers, that I'm originally from Ontario, lived in Quebec and am bilingual, so I confess that I followed B.C. politics from a rather bemused and sardonic perspective.
03-30-2013 07:46 PM
The question is : was it really a "win"
Did the province not lose money in the de-harmonization process?
Oh, Pierre, I'm sure there were (and will still be) millions upon millions of dollars lost as a result of this whole fiasco. People in B.C. seem to take a unique view of their leaders however -- oust the bums and put things back the way they were at any cost! Which is why I feel it was a Pyrrhic and fleeting victory -- I imagine the HST will return again some day.
There is a certain tragi-comedy to the gallery of rogues who've been in provincial government in B.C., and Campbell with his HST debacle will just be another portrait hanging in the hall.
03-30-2013 08:57 PM
Pierre, if you would like a good history of the recent politics in BC , then please read over the contents at these sites;
http://northerninsights.blogspot.ca/
There are more, but these are the best of the bunch. Also, be sure and read the " 100 reasons the Liberals must go " at Lailas blog. You will either end up banging your head on the wall wondering how we in BC have put up with our politicians, or you will just be amazed at the corruption, and wonder why we all haven't left BC.
03-31-2013 10:30 AM
I totally agree with you, matter of principle, we will pay one way or another, let it be by the people's choice!
03-31-2013 11:54 AM
I think the most important point which is being missed is that this was
"Taxation Without Representation"
Meaning that our elected representatives did not vote on the HST it was imposed upon the people by the cabinet. If we did not fight this fight, what sort of precedent would be set by allowing sweeping legislative changes to be enacted by a cabinet decisionrather than a vote by the legislature.
So for those who think the removal of the HST is bad for BC, please realise that this tax was put upon BC by an illegal, unconstitutional method and that it opened the door to a whole range of future abuses and we had no choice but to fight.
03-31-2013 10:57 PM
BC in a matter of principle going forward, try not to listen to many former premiers that received payola in the form of free decks etc.
Expect job losses and higher provincial taxes to make up the difference in revenue the goverment will require. Unless you get another influx from Asia, i wouldn't be surprised to see Property values that will continue to sour