An Improved H.S.T for B.

C Families
FROM 12% to 10%: The Legislature passed a Motion that tells Ottawa to reduce the HST from 12% to 10% in two steps. On July 1, 2012, the HST will be cut to 11%. On July 1, 2014, it will be cut again to 10%.
We embarked on the largest listening-exercise in B.C. Government history. More than 275,000 British Columbians participated, and told us that a 10% HST would make their families lives just a bit easier. We listened, and we acted.

REBALANCING: Businesses are a big beneficiary of the HST. It lowers their costs so that they can reinvest in jobs. Lower-income British Columbians were also beneficiaries of the HST, with HST credits leaving them better-off.
Our listening exercise also told us that we needed to do more to help every British Columbian, not just those with lower incomes. By cutting the HST to 10%, people in every single tax bracket come out an average of $120 better-off with the HST. And we raised corporate income tax rates to help rebalance the benefits between businesses and families.

YOUR CHOICE: The referendum choice is yours. Its between an antiquated and inefficient 12% PST plus GST, and a modern, streamlined and beneficial 10% HST. Under the new and improved HST, every family is further ahead with a 10% HST.
The referendum is one of the most-important choices youll ever get to make about government tax policy. It will change how our Province collects the revenue to pay for the health, education, transportation and other services on which we all depend. Carefully consider all the options and implications, and make sure you vote! If you have any questions or concerns, dont hesitate to contact my office.

Under the new HST the average B.C. family will be better off by $120 a year.

+ $120 $350
12% Tax Rate 10% Tax Rate

Family Income $10,000 or less $10,001-$20,000 $20,001-$40,000 $40,001-$60,000 $60,001-$80,000 $80,001-$100,000 Over $100,000

Additional Tax Paid Or Benefit At 12% HST (Provincial portion 7%) + $73 benefit $32 cost $129 cost $366 cost $527 cost $657 cost $1,029 cost Cost: $350

Benefit at 10% HST July 1, 2014 (Provincial portion 5%) + $170 benefit + $159 benefit + $155 benefit + $81 benefit + $53 benefit + $61 benefit + $45 benefit Benefit: + $120

Average Family Impact

Average

* Costs and benefits are in comparison to the PST system and do not include non-routine purchases (e.g. new housing).

What locals are saying about the H.S.T

As a small business owner, I see the benefit of HST on both my family life and work life. My family is my priority, and the new HST at 10% will see my family pay less tax than we do now, and we will be better off in the long run than under the old 12% GST + PST. And in the meantime, we will receive $175 for each of our two children. As a business owner, dealing with two tax reporting systems was time-consuming for me. Merging the differently administered GST & PST together into one means less paperwork and less staff time spent on filling out forms. This saves us time and money which can be reinvested in my company. Also, as a service and event facilitator, my company was considered as the end user of a majority of items we purchased. With the new HST system, I am able to reclaim most, if not all of them back, which is more money for me to invest in my business by hiring new staff, increasing my employees pay and expanding my companys business.

Thomas Wu,
Real Estate Agent, Multiple Realty Limited

In real estate transactions, HST only applies to brand new homes, whereas, resale properties will only be subjected to Property Transfer Tax. In my opinion, HST is beneficial if you operate and run a business where expenses are incurred monthly. When GST and PST were in effect, all businesses were only able to claim back the GST which was 5% and the PST of 7% was not claimable, this in turn becomes a sizeable expense every year. With the new HST system, the entire 12% of tax is claimable making the cost of running a business much lower and in turn such benefits can be returned to consumers.

Paul Cheung,
Director of Operations Lions Communications Operator of the Summer Night Market in Richmond

Information for Seniors

The government is helping offset the costs of the HST until the first rate reduction in July 2012. If British Columbians vote to keep the HST in this summers referendum:
About 320,000 low- and modest-income seniors will receive a one-time transitional payment of $175 each. B.C. HST credits are paid quarterly currently provide an additional $230 annually to 1.1 million British Columbians, including approximately 220,000 seniors.

Don Grant,
Owner, Halftime Holdings

I have found with all of my business associates and customers that support for the HST from small business is almost unanimous. It has made accounting and reporting easier, less expensive and with the input credits has created savings for these same businesses.