Why the HST? Dozens of experts support the HST because it creates jobs, increases wages, lowers prices and will help BC businesses compete with companies across Canada and around the world. Find out more.

Timing of HST Discussions with the Federal Government

Media recently received documents which they believe indicate officials in the B.C. Government were actively discussing adopting the HST prior to the May 2009 provincial election. This, however, is not true.

Read more.

Back to School Shopping and the HST The HST means some changes to school supplies, books and clothing. But the good news is that for many of those purchases, you won’t see much difference.

Will it cost more to air condition my home this summer? HST will not increase your costs for oil, electricity, natural gas, or propane used to heat, cool or power your home. Find out about the Residential Energy Credit.

Does it cost me more to feed my family under HST? You don’t pay a penny more tax on many products under the HST, including basic groceries.

220,000 Seniors Will Receive the B.C. HST Credit Under the HST system, there are a number of tax credits, rebates and exemptions that are particularly relevant to seniors.

More Jobs & Higher Wages The HST is expected to create 113,000 jobs in British Columbia. With reduced costs for employers, they can expand their business and pay higher wages.

Savings Passed on to Consumers The HST will remove hidden PST that is paid and compounded at every stage of a manufactured product.

Rebates for Families, Businesses & Individuals 1.1 million British Columbians will receive the B.C. HST Credit, businesses will save more than $2 billion and many items will be exempt.

Media recently received documents which they believe indicate officials in the B.C. Government were actively discussing adopting the HST prior to the May 2009 provincial election. This, however, is not true.

At no time during or prior to the election did the B.C. Government consider adopting an HST. There were no negotiations taking place between Ottawa and B.C. regarding moving to the HST prior to the election.

Finance officials have written briefing notes about the HST as far back as the 1990s. The documents obtained by the media were generated by B.C. Finance staff on their own initiative as they began routine work to examine the ramifications of Ontario’s decision to adopt an HST in order to brief the Finance Minister.

Discussion continued at the staff level right through the May 12, 2009 provincial election. In fact, there is an email conclusively demonstrating that even the day before the election finance officials were still gathering basic information about Ontario’s decision to adopt an HST.

It was only in a briefing after the May 12, 2009 provincial election that B.C. Finance Minister Colin Hansen was made aware of the new flexibility available to provinces: $1.6 billion in federal transition payments, the ability to adjust the combined tax rate, and the ability to create customized rebates.

It was this new information, coupled with plummeting revenues and a deepening recession, that led to the province changing its position after the election and move to the HST.

The documents include a CD Howe study that is based on Ontario from 2008. The information is outdated and does not take into account the $1.6 billion in transition payments, rebates, low-income credits and B.C. having the lowest HST rate in the nation.

Updated analysis of B.C.’s specific version of the HST by the CD Howe institute and other leading experts have confirmed that it will strengthen the economy, creating 110,000 new jobs and generating over $11 billion in new investment.

The summer holidays are nearly over and our kids are heading back to school.

Like many of us, you’re probably getting ready to shop for school supplies, books and clothing.

The HST means some changes. But the good news is that for many of those purchases, you won’t see much difference.

Here are the HST implications on some of the most common purchases.

The tax rate on children sized clothing and footwear is unchanged at five per cent. You get an instant provincial rebate at the till.

Books, including audio books, also have a provincial rebate and will only be taxed at 5%.

It’s time to start making school lunches again. Healthy lunches made with basic groceries like milk, eggs, bread, fruit, vegetables and fresh meat are tax exempt.

If you avoid prepared snack foods you can keep your grocery bill under control. The tax on your snack foods has increased. For example, you paid five per cent GST on pop, chips, candy and chocolate bars. This increased to 12 per cent on July 1st. The result: a bag of chips that cost $3.15 with GST before costs $3.36 with HST now.

Because GST applied to some school supplies before, you will pay HST on those school supplies today.

We understand some back-to-school items will cost you more. That’s why we’re providing an HST credit of up to $230 per family member to help low and modest income British Columbians.

About 1.1 million British Columbians benefit from the credit.

It’s the most popular weekend for summer travel, and if you’re getting ready to go on vacation—whether you plan to camp, stay at a hotel or something in between—you’re probably wondering if it’s going to cost you more this year because of the HST.

The HST should not hold you back.  Here’s why:

You probably know by now that if you didn’t pay GST before on something, you are not paying HST on it now.

That includes basic groceries such as milk, eggs, bread, fruit, vegetables, fresh meat, poultry and fish.

Tax on your snack foods has increased. For example, you were paying five per cent GST on pop, chips, candy and chocolate bars. This increased to 12 per cent on July 1st. The result – a bag of chips that cost $3.15 with GST now costs $3.36 with HST.

Many of the items you use for camping like coolers, lanterns, tents, sleeping bags and BBQs were already charged 12 per cent tax (GST + PST). That remains unchanged with the HST.

If you’re checking into a hotel, you’ll pay slightly less tax under the HST. On July 1st, the seven per cent provincial portion of the HST replaced the previous eight per cent Hotel Room Tax. Some communities may also levy an additional local hotel room tax of up to two per cent for tourism marketing.

If you plan to travel by cruise ship, air, bus, or rail from B.C. to international destinations such as San Francisco, Las Vegas and Alaska, you will not pay any more tax than you did before July 1st.

If you plan to travel from B.C. to anywhere in Canada, you will pay more tax. Before July 1^st, domestic travel was subject to five per cent GST. Now you pay 12 per cent HST.

However, if you plan to travel on BC Ferries, no GST or PST was charged in the past and you will not pay HST now.

Finally, if you’re planning a road trip, you won’t pay the provincial portion of the HST on gas and diesel.

For more examples, please refer to the What’s Taxable and What’s Not list.

The HST will put B.C. farmers and ranchers on a more level playing field with farmers in Alberta and in other provinces that currently enjoy the advantages of a harmonized sales tax.

The B.C. Agriculture Council says the HST will have a “significant and positive impact on agriculture overall,” estimating primary producers such as ranchers will save about $15 million each year under the HST.

Under the PST, farmers receive an exemption from tax only on a limited list of items used solely for farm purposes. While farmers are able to claim an exemption from PST on certain types of farm equipment, such as tractors and incubators, they are required to pay PST on other types of equipment and goods they purchase for their business – and do not get any of that tax back.

Under the HST, farmers generally will be able to claim input tax credits for HST paid on all of their farm inputs used for commercial activities, including many that were taxable under the PST, such as farm trucks, excavators, culverts, barns, air compressors, forklifts, orchard heaters, computers, and other equipment.

The HST will also reduce compliance costs for farmers and the businesses that sell to them. Instead of the duplication that exists with two taxes, the GST and the PST, the HST has one substantially harmonized tax base and one set of administrative rules. B.C. businesses are expected to save $150 million annually in compliance costs under the new streamlined HST system.