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BC: De Jong Rules Out Tax Panel's PST Grab

Author: Jordan Bateman 2012/11/26

Great news from Finance Minister Michael de Jong who, in a letter to the editor of the Vancouver Province today, made it clear he wouldn’t go along with his independent tax panel’s recommendations to add PST to snacks, school supplies, or cable and phone service.

We hit the alarm in this op/ed last week that the independent panel had recommended this ridiculous tax grab and beseeched de Jong to reject it. And he has (although his tone is a little huffy—it was YOUR panel, Minister, not ours. We just wanted to make sure you didn’t follow their advice):

Jordan Bateman is wrong; our government is returning to the PST with the permanent exemptions in place, just as we committed following the 2011 referendum.

We have been clear: the PST will return on April 1, 2013, with all permanent exemptions. Consumers will again not pay PST on purchases like food, restaurant meals, bicycles, gym memberships, movie tickets, school supplies, and others, nor for personal services like haircuts. 

The expert panel on business taxation was appointed in January to provide analysis and recommendations to the province on business tax competitiveness. The panel also recommended a number of procedural ways we could make the PST easier for businesses to administer, some of which we are able to put in place in time for the April transition. 

Not surprisingly, the independent experts offered a wide range of suggestions, and the report deserves the public’s consideration. However, I can tell you categorically that government will not be expanding the PST as suggested by Mr. Bateman. 

To get the facts on the return to PST, visit www.PSTinBC.ca.

Michael de Jong, B.C. minister of finance

One less tax grab for us to worry about!


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