B.C. moves to 12 per cent HST

B.C. will introduce a harmonized sales tax of 12 per cent, replacing the PST and GST effective July 2010, Premier Gordon Campbell announced Thursday morning in Vancouver.

The move will givethe province the lowest harmonized sales tax in Canada, by combining the seven per cent B.C. provincial sales tax with the five per cent federal goods and services tax, said Campbell.

All other provinces with an HST, including a recent proposal by Ontario, have a rate of 13 per cent, he said.

"This is the single biggest thing we can do to improve B.C.'s economy," said Campbell.

The province estimated the HST will remove over $2 billion in costs for B.C. businesses,

Currently, Newfoundland and Labrador, Nova Scotia and New Brunswickhave a harmonized sales taxes. Ontario is scheduled to introduce aharmonized salestax on the same day as B.C.

Colin Hansen, B.C.'s minister of finance, called thePST "an outdated, inefficient and costly tax, some of which ishidden in the price of goods and services, and passed on to and paid byconsumers."

Similar to the PST, consumers will see point-of-sales HSTrebates on the following goods:

• Gasoline and diesel fuel for motor vehicles.
• Books.
• Children's-sized clothing and footwear.
• Children's car seats and car booster seats.
• Diapers and feminine hygiene products.