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NEWS RELEASE · 29th April 2010
Ministry of Finance
The Consumption Tax Rebate and Transition Act eliminating the Provincial Sales Tax (PST) has been passed in the legislature, preparing British Columbia for a new value-added tax system that economic experts say will create jobs and drive British Columbia's economy forward, said Finance Minister Colin Hansen today.

"By eliminating the PST and shifting to what will be the lowest Harmonized Sales Tax in the country effective July 1, British Columbians will see a net increase of 113,000 jobs by the end of the coming decade and an $11.5-billion increase in capital investment," said Hansen. "As experts have said across the country, reforming our tax system is an essential step to enable B.C. businesses to expand, hire more employees, pay higher wages and lower costs for consumers."

The legislation fulfils the Province's agreement with the federal government to wind down PST by July 1, 2010. The act eliminates the seven-per cent PST and introduces rebates and exemptions that will provide direct benefits to British Columbians.

British Columbians will not pay the provincial portion of HST on: motor fuels, books, children-sized clothing and footwear, children's car seats and booster seats, children's diapers and feminine hygiene products.

The act also provides a provincially administered rebate and credit for the provincial portion of HST payable on energy purchased for residential use. In addition, the act provides for a B.C. HST credit to help low- and modest-income families. 1.1 million British Columbians will benefit from the credit.

"Employers representing more than 1.3 million workers across British Columbia have come out strongly supporting the HST because it will allow them to create jobs and boost wages in industries such as construction, mining, manufacturing, forestry, transportation, agriculture, retail, technology and many others," said Hansen. "It's also important for British Columbians to know that they won't pay a penny more in tax on many of the products and services they use such as basic groceries, health and dental services, child-care services, resale housing and prescription drugs."

The act also eliminates the provincial portion of the hotel room tax, but continues the two-per cent additional hotel room tax levied on behalf of local governments, regional districts and destination marketing organizations to raise revenue for local tourism marketing.

In preparation for the transition to HST, on May 1, 2010, HST will apply to payments for goods and services delivered on or after July 1, 2010. PST will not apply to those payments. For information, visit the Canada Revenue Agency's website at: http://www.cra arc.gc.ca/tx/pstr/trnstnl/menu-eng.html.

For more information on the Consumption Tax Rebate and Transition Act, visit: www.gov.bc.ca/hst.
Propoganda based on questionable report
Comment by Karen Dedosenco on 30th April 2010
Almost all of the propoganda spewed out by the BC Liberals is based on a report from Jack Mintz, a strong BC Liberal supporter. Mintz was paid $12,000 for a report that would support Campbell's intentions.

There have been many concerns that Mintz has nothing to base his predictions on, that he has been known to contradict his statements from report to report, and that his numbers are far-fetched.

I will not be holding my breath for the landslide of investment and jobs that Mintz and Campbell think will occur with the implimentation of the HST.
"PST Eliminated" is a lie
Comment by Helmut Giesbrecht on 30th April 2010
The spin doctors of the Premier's Public Affairs Bureau must really be working overtime to come out with such a claim. They also must think the public is stupid. The PST has been rolled into the HST, not eliminated at all. The headline is deliberate and simply not true. IT is beyond spinning the news.