HST: How It Works

Two days ago, if anyone had asked me what I thought about the proposed HST in British Columbia, I would have told them that Gordo, the little weasel, had screwed over British Columbians once again. But that was before I actually took the time to learn everything I could about the new Harmonized Sales Tax.

With the recession and promises of no taxes by the BC Liberals, it isn’t a wonder many people in this province, low-income families and small businesses alike, were weary about the HST. Any mention of taxes, save for tax cuts, is bound to stir up outrage, in a recession, no less. But I have to admit the HST is not a bad idea.

Before you go calling me a Liberal patsy or any other such unflattering names, let me state for the record that I am a social democrat at heart and have voted for the NDP since I turned eighteen. But this isn’t about partisan politics. This is about what’s good for the province and the people of this province. Rest assured, I have many qualms about the BC Liberals but the HST may be the one thing we agree on.

Instead of shooting the new HST down, let’s look at the numbers. The current GST in BC is 5 percent while the PST is 7 percent, for a total of 12 percent. The PST is non-refundable, whereas the HST, also at 12 percent, will be. Goods that are currently exempt from the GST will be exempt from the HST. This means that groceries and rent costs will not be taxed with the new HST.
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