The provincial government is considering a business tax cut for electricity bills, aiming to boost the struggling forest andmining industries.
In November, a panel of tax competitiveness experts reported to Finance Minister Mike de Jong that commercial industry pays$160 million in provincial sales tax (PST) on electricity bills – highlighting BC is already considered a high-tax environment forbusiness and investment compared to the national average.
District of 100 Mile House Mayor Mitch Campsall says he agrees in principal with the eight mayors across rural BC getting onboard with letters asking the province for PST relief for lumber and other industries in their communities.
Campsall says anything that helps industry, businesses and small business is always beneficial in the area.
“We need these businesses in our community to survive, and this is another tool they [can give] business – and I really stressour small businesses, and also our industry – to try to survive for our community.”
Both the forest and mining industries provide considerable employment in the South Cariboo, as well as hope for future jobs,he notes.
Campsall adds the forestry industry is currently going through some rough times, and anything government can do toimprove their outlook is “huge” for the South Cariboo economy and jobs.
“We are looking forward to [new industries] coming into our community, so we are well in support of it.
“Getting more employment is always a good thing, and any dollar we can get for our small businesses is a good dollar.”
South Cariboo Chamber of Commerce president Leon Chretien says anytime a tax can be removed on a business expense, thegovernment is moving in the right direction.
“Ultimately, tax on a business is tax on a consumer, as businesses need a return on the investment to keep motivated to takerisks and employ the community.”
Energy Minister Bill Bennett states in a release that taking PST off the purchase of electricity would help pulp mills, sawmills,mines and small business.
“BC is one of the only, if not the only jurisdiction that charges sales tax on the purchase of electricity,” Bennett notes.
