How BC will handle HST transition
Posted August 29, 2011 7:47 am.
This article is more than 5 years old.
VICTORIA (NEWS1130) – As the province gets ready to replace the Harmonized Sales Tax with the old split-tax system in about 18 months, we can expect some parts of the economy to heat up and others to cool down.
It’s all about working the system to get the most benefit out of the HST before it goes, and to take advantage of the old PST/GST system when it’s back.
As the Globe and Mail points out, business owners may want to invest in expansion or buy new equipment because of money-saving exemptions under the HST system.
On the other hand, things like renovations and new home construction cost more since the HST came in and people may hold off on projects until it’s gone, causing a slowdown in that sector.
And there’s going to be a double bonus for restaurants looking to expand. They can save money on investments under the HST and then look forward to an increase in business post-HST.
Meantime, business groups are pressuring the province to address what they call lost competitiveness and efficiencies with the elimination of the Harmonized Sales Tax.
