“We’ve been calling for a two-point cut in the HST for nearly two years now – since the HST was introduced,” said Gregory Thomas, BC Director. “But better late than never.”

“With a five-percent provincial HST rate, the referendum becomes a no-brainer. Voters should vote ‘NO’ to reinstating to the provincial sales tax of 1949. The old PST is a job-killing relic that belongs in the history books,” continued Thomas.

The CTF had urged the government to off-set the two-point reduction by cutting wasteful spending as well as eliminating $942 million in rebates, credits and reimbursements – special deals for special interests. Instead, the government is proposing a 20 per cent increase in the general corporate tax rate, from 10 per cent to 12 per cent beginning next year and also proposing to keep the 2.5 per cent small business tax rate that was supposed to be eliminated.

“This will be a tough pill for business in B.C. to swallow, especially small business,” said Thomas. “Hopefully, this is truly only a temporary move and it will be reversed once the budget is balanced.”

“Sending families $175 for each child this year and sending low-income seniors $175 as well will help address a tax-grab from a 12 per cent HST that voters clearly didn’t endorse,” Thomas added.

“B.C. needs to move past the uncertainty and the turmoil we’ve seen with the HST debate. We can grudgingly accept a 20 per cent hike in corporate taxes if it means we get an HST that everybody can live with.”

Thomas noted that only Finance Minister Kevin Falcon publicly campaigned for the HST reduction. “We’re pleased that Falcon’s ideas won the support of the Premier, the cabinet, and the government caucus. We urge voters to support this compromise and vote no to returning to the PST in the upcoming referendum.”