HST costs average family $350 a year

Former Alberta treasurer Jim Dinning chaired B.C.'s independent panel on the impact of the harmonized sales tax.

Former Alberta treasurer Jim Dinning chaired B.C.'s independent panel on the impact of the harmonized sales tax.

VICTORIA – The independent panel reviewing the impact of B.C.’s harmonized sales tax has concluded that it increases prices for 17 per cent of an average family’s purchases, totalling $350 a year.

The panel was appointed by the B.C. government as part of preparations for a mail-in referendum on the HST that begins in mid-June. The panel released its report Wednesday, after a delay to avoid release during the federal election.

It finds that the B.C. government is getting more revenue than it expected in the first year of the HST. The finance ministry’s initial projections were that rebates for low-income families, home energy use and other exemptions would make the tax revenue neutral in the early years.

The report concludes that going back to the former provincial sales tax would cost the province $531 million in net tax revenues in the first year, with the amount increasing in subsequent years. That is in addition to the repayment of a $1.6 billion transition fund paid in instalments by the federal government to B.C.

One reason for the higher revenues that the HST hasn’t deterred spending as expected.

The report notes that while restaurants reported a drop in sales when the HST increased taxes by seven per cent in July 2010, that is not borne out by Statistics Canada measurement. It found that between June 2010 and January 2011, restaurant industry sales increased three per cent in B.C., the same as the national increase over that time.

The report also undercuts the government’s estimate of jobs created due to new business investment. It calculates that The HST will generate 24,400 “better paying” jobs by the end of the decade. The B.C. government has been citing a study by University of Calgary economist Jack Mintz that projected 113,000 new jobs.

Finance Minister Kevin Falcon shrugged off the lower estimate of jobs, saying the public is skeptical about any forecasts of future job growth.

“I think what this report tells us is that it may be a low of 24,000 jobs, or it could be as high as 113,000 jobs, but there will be lots of new jobs created,” Falcon said.

The panel’s report is available at the provincial government’s dedicated website, http://www.hstinbc.ca/

The website also has a new survey form where people can make recommendations on possible changes to the HST. Premier Christy Clark confirmed Wednesday that the government will offer proposed changes to the HST before people vote in the referendum.

Just Posted

Vancouver courthouse. (Photo: Tom Zytaruk)
Man loses bid to appeal conviction for 1999 rape at Abbotsford music festival

James Redden, 53, formerly of Nanaimo, was found guilty in 2019 following six-day trial

Dozens of demonstrators gathered in March at the Hope Station House, showing support for preserving the 1916 building. (Photo/Christian Ward)
New reports breathe life into efforts to save the Hope Station House

The documents were presented to District of Hope Council at a meeting June 14

.
Fraser Health monitors long-term care vaccination rates amid local COVID-19 outbreak

COVID-19 transmission has largely been on the decline in Agassiz-Harrison

Chilliwack’s Jordyn Huitema, a member of the Canadian national women’s soccer squad.
Another scoreless draw for Chilliwack’s Jordyn Huitema and Canadian national women’s soccer squad

Canada played Brazil to a 0-0 tie days after doing the same in a friendly against the Czech Republic

FVRD surveyed public opinion on cannabis production and processing in the electoral areas. Odour and distance from residential areas were the top concerns. (Black Press file)
Cannabis production and processing rules being drafted by Fraser Valley Regional District

Data from public opinion survey will be used to guide cannabis-related land use

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

A 34-year-old man was arrested Monday after Transit Police found him riding a SkyTrain with a shotgun in the front of his sweatpants. (Transit Police)
SkyTrain passenger arrested, charged for concealing shotgun in his sweatpants

Codty-James Gray, 34, was found with ammunition, brass knuckles and knives

Ivy was thrown out of a moving vehicle in Kelowna. Her tail was severely injured and will be amputated. (BC SPCA)
Kitten thrown from moving vehicle, needs help: Kelowna SPCA

The seven-month-old kitten had severe tail and femur injuries

A health-care worker holds up a sign signalling she needs more COVID-19 vaccines at the ‘hockey hub’ mass vaccination facility at the CAA Centre during the COVID-19 pandemic in Brampton, Ont., on Friday, June 4, 2021. This NHL-sized hockey rink is one of CanadaÕs largest vaccination centres. THE CANADIAN PRESS/Nathan Denette
‘Vaxxed to the max’: Feds launch Ask an Expert campaign to encourage COVID shots

Survey shows that confidence in vaccines has risen this spring

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Port Alberni court house (Alberni Valley News)
Inquest set into 2016 death of B.C. teen after a day spent in police custody

18-year-old Jocelyn George died of heart failure in hospital after spending time in jail cell

Children’s shoes and flowers are shown after being placed outside the Ontario legislature in Toronto on Monday, May 31, 2021. THE CANADIAN PRESS/Frank Gunn
Ontario commits $10 million to investigate burial sites at residential schools

Truth and Reconciliation Commission identified 12 locations of unmarked burial sites in Ontario

Singer-songwriter Jann Arden is pictured with a draft horse. (Canadian Horse Defence Coalition)
Jann Arden backs petition to stop ‘appalling’ live horse export, slaughter

June 14 is the International Day to End Live Export of Animals

A letter from a senior RCMP officer in Langley said Mounties who attended a mayor’s gala in January of 2020 used their own money. Controversy over the event has dogged mayor Val van den Broek (R) and resulted in the reassignment of Langley RCMP Supt. Murray Power (L). (file)
Langley RCMP officers used ‘own money’ to attend mayor’s gala, senior officer says

‘I would not want there to be a belief that the police officers had done something untoward’

Most Read