Advertiser reader responds to harmonizing tax issue
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Updated: July 28, 2009 1:35 PM
Harmonizing the PST with the GST is nothing more than a colossal money grab. If we can believe Premier Campbell that businesses will save $1.9 billion in taxes through harmonization those tax dollars will have to be replaced and they can come from only one source, BC consumers/taxpayers. In fact with harmonization the tax recovery will be much greater than $1.9 billion.
This additional tax will add seven per cent to every item and service that the GST is applied to
including home heating fuels (on top of the carbon tax), electricity (on top of 15 per cent in rate increases), municipal utility fees, newspapers, many food items etc etc. you name it and it will be taxed with PST plus GST.
Finance Minister Hansen has gone on record saying that the impact on consumers will be minimal because retailers and service providers will become more competitive and will be able to lower prices, what hogwash!
When the Federal Government lowered the GST by two per cent there was absolutely no relief at the gas pumps and the cost of gasoline to consumers increased.
Will we see reductions in the cost of home heating fuels, electricity or municipal services because those service providers will be more efficient? Not very likely.
To suggest that this new tax will be revenue neutral or will have a minimal impact on B.C. taxpayers is as one of our local politicians would say "a bald face lie!"
Jim Kennedy
Cranbrook
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