VANCOUVER (NEWS1130) – It’s been a year since the province did away with the Harmonized Sales Tax, but that doesn’t mean reminders of the tax aren’t still popping up.
With the HST, taxpayers were able to make more money before hitting the threshold amount that forced people to pay more come income tax time.
Jordan Bateman with the Canadian Taxpayers Federation also says small businesses are still trying to iron out issues with charging Provincial Sale Tax, having to charge different rates for providing a service versus selling something wholesale.
So what should be done?
“BC now has gotten back to a balanced budget and has some small surpluses to work with, we need to look at some of the effects of this tax, are we doing everything we can to simplify the way to PST is collected? It’s been a year under the new PST system, it’s a good time to go back and revisit. Are there tweaks we can make to make that easier?”
Bateman argues there needs to be a way to raise the basic personal amounts, so British Columbians don’t have to pay as much..
“That [the basic personal amount] has now shrunk back to the pre-HST level and what it means is, for the average couple, about $150 more in income taxes, just through that kind of stealth tax increase.”