Vernon-Monashee Eric Foster denies politics is being played with the harmonized sales tax.
The provincial government has unveiled plans to reduce the HST rate from 12 to 10 per cent if the public votes to keep the tax in this summer’s referendum.
“It’s the government listening to people,” said Foster when asked if the lower tax is part of a pre-election strategy.
“We did a terrible job of introducing this but a harmonized tax is good policy. We want to make things easier for families.”
Legislation is being introduced to reduce the provincial portion of the HST by one per cent July 1, 2012 and by another one per cent July 1, 2014.
“We’ve been hearing that people want something done with the rate,” said Foster, who says the government couldn’t just scrap the tax.
“In June there will be a referendum. We are giving everyone an opportunity to decide which tax regime they want.”
Besides lowering the rate, the government says it will provide one-time cheques of $175 per child under 18 to offset the impact of the HST on families. Low and modest-income seniors will also get a one-time $175 cheque by the end of this year.
A recent study indicated families pay an average of $350 more since the HST was introduced, but the government states that reducing the HST to 10 per cent will lead to that family paying $120 less in tax.
The B.C. Chamber of Commerce is praising the government’s decision.
“All of the benefits HST has for B.C.’s small businesses remain, such as the reduced input and administrative costs.,” said John Winter, B.C. chamber president, in a release.
The handling of the HST, though, also has its detractors.
“There are serious problems with this tax beyond the rate,” said Craeg Pohorelic, Vernon-Monashee NDP president.
“It shifts the burden of taxes from one group to another and it places jurisdiction at the federal government level. The people of B.C. need to reject this tax and send the politicians back to the drawing board to produce a better and long lasting tax policy.”
John Cummins, B.C. Conservative leader, doesn’t believe the lower HST will benefit business because the corporate income tax rate is going from 10 to 12 per cent Jan. 1, 2012.
“The increase in the corporate tax defeats the purpose of the HST,” said Cummins, who was in Vernon Wednesday.
“It also falls on top of the increase in the minimum wage.”
The change in the HST is being linked to a possible provincial election this year.
“They will just raise it if elected again,” said Rod Baziw, a local Fight HST organizer who continues to hear complaints about the government. “They said they weren’t going to put an HST in and then they did it.”
Bill Vander Zalm and Chris Delaney, provincial Fight HST organizers, will host a town hall meeting Sunday at noon at the Schubert Centre.
