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General Manager's Report by Erin Hanson
The referendum outcome is now widely known and with the loss of the HST, businesses already contending with challenging times, must now face the uncertainty of when and how to undo the HST and reinstate the two-tiered GST/PST system. It is disappointing to know that process ultimately caused the demise of a more efficient tax system that raised overall revenues and evened the playing field between services and goods.
Along with the BC Chamber of Commerce, and our many local counterparts across the province, your Chamber will be calling on our government to support a new and improved PST that could include some of the efficiencies and competitiveness the value-added HST model brought to the table.
The implications of foregoing an estimated near $3 billion in revenue over the next few years and paying back the $1.6 billion due to Ottawa as a consequence of the vote is also of concern. BC needs to be on sound fiscal footing with balanced budgets in order to ensure the province's long term prosperity. The HST outcome will force the government to continue a deficit-reduction plan or incur new tax hikes and/or spending cuts; increasing its risk exposure in the current global economic turmoil.
Fleishman-Hillard, a national communications firm with Vancouver offices, has produced an analysis of the Referendum that includes a summary of the verdict, an analysis of its meaning, and explanation of the transition plan for both Federal and Provincial governments. It is important reading to help clarify much of the mis-information which seems to always accompany the HST file and to understand how the transition will work. (Reference the document footnote as its one disclaimer.) To read the report, please follow the link below.
HST Referendum Analysis | 
