scott craven
Well-Known Member
I never expected it to happen, but apparently 54 % have voted to scrap the tax.
HST is scrapped !
- Thread starter scott craven
- Start date
Klob
Well-Known Member
Not surprised, but dissapointed. This will cost us more now in the long run.Or should I say it will cost our kids. The tax is not necessarily bad, but the way it was implemented was wrong and Campbell paid the price. 1.6 billion now will be deducted from Federal transfer payments and HST rebate checks will dry up. Not a good day if you run a business and now have to go back to the old system.
FishBC.org
Active Member
Ok so now what? I have a bank draft in hand for a used boat that includes the HST in it?. Do I still pay the HST? or scrap it and pay PST only?. Seems illogical to pay the HST now?
Not only that but it's alot of money at the extra %?
Does anyone know?
Not only that but it's alot of money at the extra %?
Does anyone know?
lorneparker1
Banned
It doesn't come into effect till 2012. Good for me personally, good for my customers, terrible for my accountant.
FishBC.org
Active Member
Yeah makes sense. Might as well pay it for now since it's already drafted. They'll suck the extra as long as they can I imagine. Feel bad though for the small business guys who now have to rekey cash registers and such at extra expense, but going back to the old system does benefit the small guys some for sure, and makes it more appealing for some to start buying things again.
NautiGirl
Well-Known Member
You will need to pay the hst for awhile yet. If you own a business, you better get any asset additions/renovations done before the benefit of the HST dissappears and you are no longer able to claim ITC's from the provincial portion of HST. Businesses should buy now and save. Don't delay any big purchases. Stimulate the economy.
NEWS RELEASE
For Immediate Release 2011FIN0067-001048
Aug. 26, 2011
Ministry of Finance
Action plan in place to return B.C. to 12% PST/GST
VICTORIA – The Province will reinstate the combined 12 per cent PST and GST tax system following the referendum decision by British Columbians to extinguish the HST in B.C., Finance Minister Kevin Falcon announced today.
An action plan has been established to guide the transition process and help ensure an effective and orderly transition from the HST to the PST plus GST system in B.C.
The PST will be reinstated at seven per cent with all permanent PST exemptions. The Province may make some common sense administrative improvements to streamline the PST.
The transition period is expected to take a minimum of 18 months, consistent with the report of the independent panel on the HST. During this period, the provincial portion of the HST will remain in place at seven per cent. Eligible lower-income British Columbians will continue to receive the B.C. HST Credit until the PST is re-implemented. The B.C. HST credit will then be replaced by the re-implemented PST credit.
During the transition period, the Province will provide quarterly updates on the progress of returning to the PST.
Quote:
Minister of Finance Kevin Falcon—
“British Columbians have made their choice and we will honour that decision. Now more than ever, government must provide British Columbians economic stability and focus our attention toward growing our economy to create jobs and balancing our budget in a time of global economic uncertainty.
“We will work as quickly as we responsibly can to return to the PST. We have always been clear that, as the independent panel found, dismantling the B.C. HST and returning to the PST will take time to do properly.
“I can assure British Columbians PST will not be applied to such items as restaurant meals, haircuts, bikes and gym memberships – just as it was before the HST was introduced in B.C.”
Learn More:
For more information about the return to the PST, visit: www.gov.bc.ca/fin
BACKGROUNDER
Action Plan to Re-implement PST
An action plan has been established to ensure an effective and orderly transition to the PST. Key phases in the transition process are described here.
Federal Transitional Rules and Systems: A letter from the provincial finance minister to the federal finance minister is conveying the referendum results and advising the federal government that B.C. will re-implement the PST. The Province will work with the federal government to develop HST transition rules and to make any necessary changes to systems and processes. The provincial government will begin discussions with the federal government about exiting the Comprehensive Integrated Tax Coordination Agreement (CITCA) including the return of the funding received for adopting the HST.
Provincial Legislation and Transitional Rules: The provincial government will develop legislation and regulations necessary to re-implement the PST in B.C. and may make some administrative changes to streamline and improve the PST. Provincial PST transition rules to mirror federal HST transition rules will be developed. The provincial government will develop other legislation and administrative programs necessary to support the full reimplementation of the PST (e.g. hotel room tax, etc).
Provincial Systems Development: The Province will develop and establish appropriate reporting, data gathering, billing, remittance/collection, audit, assessment and appeal processes, and supporting computer systems to properly administer the PST and other related taxes (e.g. hotel room tax, etc.) in B.C.
Provincial Administration: The Province will re-establish its capacity to administer the tax in the areas of registration and close of business, field and desk audit, appeals, rulings, provincial tax information phone lines, billings and remittances, collections and refunds. This will include staffing, facilities and equipment, and staff training to administer the PST and related taxes. This also includes developing appropriate administrative reporting forms and other information and communications material required to support the transition.
Provincial Business Registration and Outreach: The provincial government will register approximately 100,000 businesses as tax collectors before the PST is re-implemented and provide information and training on the tax application, collection, compliance and reporting rules related to the PST. By the time the PST is re-implemented, there will be an estimated 30,000 new businesses in B.C. with no PST experience. These businesses will need to be registered and provided with detailed information and training to enable them to comply with the tax law.
Business Transition: Businesses will need to change their own electronic and manual systems and processes to assess, collect, report and remit the PST and other related taxes to the provincial government.
Other Key Stakeholders: The provincial government will consult with key administration stakeholders once provincial transition rules are completed. The Province relies on partner agencies to help ensure efficient tax collection, reporting and compliance. These agencies will need to make a number of systems and process changes, as well as receive information and training to help complete the PST transition.
NEWS RELEASE
For Immediate Release 2011FIN0067-001048
Aug. 26, 2011
Ministry of Finance
Action plan in place to return B.C. to 12% PST/GST
VICTORIA – The Province will reinstate the combined 12 per cent PST and GST tax system following the referendum decision by British Columbians to extinguish the HST in B.C., Finance Minister Kevin Falcon announced today.
An action plan has been established to guide the transition process and help ensure an effective and orderly transition from the HST to the PST plus GST system in B.C.
The PST will be reinstated at seven per cent with all permanent PST exemptions. The Province may make some common sense administrative improvements to streamline the PST.
The transition period is expected to take a minimum of 18 months, consistent with the report of the independent panel on the HST. During this period, the provincial portion of the HST will remain in place at seven per cent. Eligible lower-income British Columbians will continue to receive the B.C. HST Credit until the PST is re-implemented. The B.C. HST credit will then be replaced by the re-implemented PST credit.
During the transition period, the Province will provide quarterly updates on the progress of returning to the PST.
Quote:
Minister of Finance Kevin Falcon—
“British Columbians have made their choice and we will honour that decision. Now more than ever, government must provide British Columbians economic stability and focus our attention toward growing our economy to create jobs and balancing our budget in a time of global economic uncertainty.
“We will work as quickly as we responsibly can to return to the PST. We have always been clear that, as the independent panel found, dismantling the B.C. HST and returning to the PST will take time to do properly.
“I can assure British Columbians PST will not be applied to such items as restaurant meals, haircuts, bikes and gym memberships – just as it was before the HST was introduced in B.C.”
Learn More:
For more information about the return to the PST, visit: www.gov.bc.ca/fin
BACKGROUNDER
Action Plan to Re-implement PST
An action plan has been established to ensure an effective and orderly transition to the PST. Key phases in the transition process are described here.
Federal Transitional Rules and Systems: A letter from the provincial finance minister to the federal finance minister is conveying the referendum results and advising the federal government that B.C. will re-implement the PST. The Province will work with the federal government to develop HST transition rules and to make any necessary changes to systems and processes. The provincial government will begin discussions with the federal government about exiting the Comprehensive Integrated Tax Coordination Agreement (CITCA) including the return of the funding received for adopting the HST.
Provincial Legislation and Transitional Rules: The provincial government will develop legislation and regulations necessary to re-implement the PST in B.C. and may make some administrative changes to streamline and improve the PST. Provincial PST transition rules to mirror federal HST transition rules will be developed. The provincial government will develop other legislation and administrative programs necessary to support the full reimplementation of the PST (e.g. hotel room tax, etc).
Provincial Systems Development: The Province will develop and establish appropriate reporting, data gathering, billing, remittance/collection, audit, assessment and appeal processes, and supporting computer systems to properly administer the PST and other related taxes (e.g. hotel room tax, etc.) in B.C.
Provincial Administration: The Province will re-establish its capacity to administer the tax in the areas of registration and close of business, field and desk audit, appeals, rulings, provincial tax information phone lines, billings and remittances, collections and refunds. This will include staffing, facilities and equipment, and staff training to administer the PST and related taxes. This also includes developing appropriate administrative reporting forms and other information and communications material required to support the transition.
Provincial Business Registration and Outreach: The provincial government will register approximately 100,000 businesses as tax collectors before the PST is re-implemented and provide information and training on the tax application, collection, compliance and reporting rules related to the PST. By the time the PST is re-implemented, there will be an estimated 30,000 new businesses in B.C. with no PST experience. These businesses will need to be registered and provided with detailed information and training to enable them to comply with the tax law.
Business Transition: Businesses will need to change their own electronic and manual systems and processes to assess, collect, report and remit the PST and other related taxes to the provincial government.
Other Key Stakeholders: The provincial government will consult with key administration stakeholders once provincial transition rules are completed. The Province relies on partner agencies to help ensure efficient tax collection, reporting and compliance. These agencies will need to make a number of systems and process changes, as well as receive information and training to help complete the PST transition.
trendsetter
Active Member
Yep, that sucks. i guess I can't complain since I never got my ballot and didn't vote. I would've voted to keep it.
The money is going to have to come from somewhere. service cuts or higher personal income taxes just to revert to an archaic tax system that actually costs more than the HST would've at 10%.
Way to go BC!
The money is going to have to come from somewhere. service cuts or higher personal income taxes just to revert to an archaic tax system that actually costs more than the HST would've at 10%.
Way to go BC!
Kristo
Active Member
I believe that most people who voted against the HST were pod with the liberals and or the idea of paying more tax.
The costs associated with the implimentation of HST, the referrendum and now the re-implimination of the PST will be staggering....guess who will be paying?
Higher taxes are a symptom of too much govt spending and budgets that are too large....this is the problem.
For example ....Is it necessary for govts ( and ICBC) to spend taxpayers dollars on advertising ....to tell us how wonderfull they are?
Its too nice a day to even be thinking about this......Im going down to the boat
The costs associated with the implimentation of HST, the referrendum and now the re-implimination of the PST will be staggering....guess who will be paying?
Higher taxes are a symptom of too much govt spending and budgets that are too large....this is the problem.
For example ....Is it necessary for govts ( and ICBC) to spend taxpayers dollars on advertising ....to tell us how wonderfull they are?
Its too nice a day to even be thinking about this......Im going down to the boat
P
peetz
Guest
Liberals ... they do what they want .... they never ask what the people want ... see what happens ... i didnt vote for them
trendsetter
Active Member
Shot ourselves in the foot and now we'll all end up paying for it. But hey, at least we've shown Gordon Campbell....
Childish...
Childish...
Fish Assassin
Crew Member
Only if we could get a refund for HST paid......Just bought a used travel trailer $$$$$$$$. How about all the boats and cars bought this summer? 2x the tax on used stuff. Like WTF......
Captainkirk
Member
Well said ! Holmes
Little Hawk
Active Member
In this banter about the pros & cons of this tax, I have not heard one word concerning the small time contractor and how its affected our business.
Tell me why I should be upset that I now - once again - only have to charge my clients 5-points on a contract vs. 12%?
Tell me why I should be upset that I now - once again - only have to charge my clients 5-points on a contract vs. 12%?
scott craven
Well-Known Member
You're right Terry, tax on labour will be reduced by 7%
not too many people will complain about that.
not too many people will complain about that.
trendsetter
Active Member
Because your supplies will cost you 7% more. Meaning you will make less money for the same job compared to what you would've made with HST.
I'm a contractor too. The more taxable supplies you use the more PST will cost you to run your business.
i was really torn on this one, was really choked about the way it was brought in, and about the new taxes on previously exempt pst services. i realize the hst was good for the econonmy and biz in general. i did not vote in the referendum as i was so torn, if i did vote i would have voted against it, but couldn't bring myself to actually do it, knowing how much it will cost to reverse. try looking at it from the consumers perspective. most of my discretionary spending is on things like going out for dinner(most often 2-3 times a week) and other such services. i'm paying an extra 7% for all these services now, these restaurants etc are reaping the benefits of hst rebates on their costs. you tell me how come not one of these restaurants or other services has not lowered their prices and passed them on to the consumer, not one that i have come across. hst was a massive tax grab on the consumer to the benefit of business and govt. yes it was more cost effective for govt and biz, why the h could they not have brought it in and been more honest about it and why not a 2 tier hst leaving the tax at previous levels for the pst exemptions. at least the govt will think twice about major tax changes without a referendum 1st. imho their biggest mistake was not admitting that yes there are some cons to hst, but no they had lie and go on and on that it is all good.
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