After telling British Columbians they had no plans to impose a Harmonized Sales Tax, the B.C. Liberal government turned around after the election and announced a new sales tax that will cost consumers billions of dollars.
Premier Gordon Campbell and Finance Minister Colin Hansen are trying to claim that they suddenly changed their minds after the election because it was only at the end of May that they learned Ontario was bringing in the HST and that the federal government would allow provinces flexibility.
But the government’s excuses just don’t stand up to the facts:
March 11, 2008: In response to questions from New Democrat critic Jagrup Brar in the legislature, former Revenue Minister Rick Thorpe says “In British Columbia we have an extensive exemption list. Under GST, there aren't exemptions… Those types of decisions have far-reaching ramifications, and I can say that harmonization has not been on our agenda.”
March 31, 2008: In response to questions from New Democrat critic Bruce Ralston in the legislature, former Finance Minister Carole Taylor confirms that the federal Finance Minister has been pressuring B.C. to harmonize the PST and GST, but that the provincial government is not bringing in an HST.
Jan. 23, 2009: Ontario premier Dalton McGuinty publicly confirms he is considering moving to the HST. (See: http://www.citynews.ca/news/news_31312.aspx)
Jan. 27, 2009: Federal Finance Minister Jim Flaherty brings in a budget that suggests his government will be flexible in negotiations with provinces that want to bring in the HST. (See analysis at http://www.mccarthy.ca/article_detail.aspx?id=4330).
March 10, 2009: The Ontario government signs a memorandum of understanding with the federal government outlining the terms of implementing the HST.
March 26, 2009: The Ontario provincial budget is released and McGuinty officially announces his intention to bring in the HST.
March 30, 2009: Federal Finance Minister Jim Flaherty confirms that “other provinces” have approached him about the HST. Provinces without the HST are Saskatchewan, Manitoba, P.E.I., and B.C.
Since Saskatchewan, Manitoba, and P.E.I. have said they are not interested, that leaves only B.C. (See:http://www.canada.com/business/Other+provinces+follow+sales+harmonization+Flaherty/1445492/story.html; http://www.theguardian.pe.ca/index.cfm?sid=266693&sc=98)
May 2009: The B.C. Liberals state in two separate election surveys that they “have no plans to formally engage the federal government in discussions about potential harmonization”, noting that doing so “would extend the PST tax base to a broader range of goods and services that are presently exempt from provincial sales tax” which would be “a major concern.”
Week of July 13th: Minister of Small Business Iain Black assures the Restaurant and Foodservices Association that the government will not make any announcements on tax harmonization without proper consultation.
July 23, 2009: Gordon Campbell and Colin Hansen catch consumers and industry by surprise by suddenly announcing the HST.