The implications of the recent referendum on the harmonized sales tax to all B.C taxpayers are likely to be significant, says the chair of the Delta Chamber of Commerce.
Reflecting on last month's announcement the HST had failed to gain the support of B.C. voters, Ian Tait noted that in addition to the $1.6 billion that must be returned to Ottawa as a result of rescinding the federal agreement, there's also the initial and annual cost of a provincial bureaucracy to collect the PST.
"I hope the provincial government will take the time to consult with chambers of commerce, boards of trade and other business organizations across B.C. on how best to transition to the PST/GST and explore new consumption tax models that consider some of the efficiencies and competitiveness of the HST," Tait stated.
"Employment, job creation, business confidence and economic certainty all require a careful and measured approach to resolve the referendum result."
Following the results of the province-wide mail-in referendum on the controversial tax, the province announced the old PST and GST would return by March 31, 2013.
Elections BC announced a couple of weeks ago that a majority of voters chose to go back to separate provincial and federal sales taxes, with 54.73 per cent voting to scrap the HST.
In Delta South it was a different story as 53.54 per cent voted to keep the HST. In Delta North, though, 58.44 per cent voted to scrap the tax.
Following the announcement, B.C. Chamber of Commerce president and CEO John Winters expressed disappointment, saying the result would have a profound impact on the economy, business, workers and unions.
Delta South MLA Vicki Huntington called on the government to engage openly and honestly with people about the transition, minimize the effects of repaying the federal government and avoid repeating the mistakes of the past.
Meanwhile, Premier Christy Clark said she has decided against calling a fall election in order to focus on her agenda in the next session of the legislature.
sgyarmati@delta-optimist.com
