As hot topics go, this ones a doozey! The HST, a harmonized version of the GST and PST, was introduced in July 2010, and here we are in July 2011 voting to either keep it or revert to paying separate taxes.
There was never a warm reception for the HST when it was first instated, and many showed their lack of support by signing petitions hoping to terminate it. Today, with the vote on, citizens who are fighting HST are expressing their thoughts on the matter through the website www.fighthst.com. They’re positioning themselves as myth-busters expressing such statements as, the government would have an election before the HST is lowered to 10 per cent, and this may not be the next government’s choice; as well, they say, how would anyone know if the government wouldn’t hike HST back up again.
As any debate has, the other side is for the combined tax, believing it would strengthen our economy. The information for this argument is on the BC government site www.hstinbc.ca. The government is positioning themselves as givers of information, and they express such statements as, the HST makes it cheaper for businesses to invest in and operate their business, and this keeps employees working and business expanding. As well as, if there was no GST on a product or service before July 1, 2010, there is no HST on it today.
Who’s to say who’s right? Well, majority of course, through voting.
To sweeten the HST deal, the BC Government is allowing the HST to drop two points by July 1, 2014; this would mean we would only pay a 10 per cent tax, rather than the current 12 per cent. As a promise to lower the HST tax if the province of BC votes “NO” to abolishing it, the Federal government is dropping its portion by one point on July 1, 2012, making the HST tax 11 per cent. However, if citizens vote “Yes,” then we go back to paying five per cent GST and seven per cent PST.
Citizens get to decide by mail-in voting ballots, which must be returned by August 5th of this year, if they would like to keep HST or not. Have any questions? Ask us.
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