Written by Colin Hansen
Minister of Finance
Wednesday, 25 November 2009

Paul Willcocks’ column on the differences between Ontario and B.C. in implementing a harmonized sales tax leaves out an important point – in order to match Ontario’s tax measures, B.C. would have to raise its tax rates.
British Columbia has already implemented significant tax cuts. For example, a single individual in Ontario with $80,000 annual income would pay almost $5,000 more in total provincial taxes, including income, consumption and property taxes, than they would in B.C.
In British Columbia, provincial personal income taxes for individuals are the lowest in the country up for those earning up to $118,000, most taxpayers have seen rates reduced by 37 per cent or more since 2001 and an additional 325,000 British Columbians no longer pay any provincial income tax.
Unlike Ontario, here in B.C., residents will not pay HST on gas to fill up their vehicles, or on their home energy costs. Also, B.C.’s low income families and individuals will receive the B.C. HST credit. The annual amount of the credit will be $230 per family member for individuals with incomes up to $20,000 and families with incomes up to $25,000. This will benefit about 1.1 million British Columbians.
Clear rules help everyone. The HST transitional rules and tax notices, like last week’s tax bulletin, will continue to provide certainty and clarity for businesses and we are also working with the federal government to provide a variety of outreach activities starting in January 2010.
Mr. Willcocks says Ontario is doing much to “win people over” – but at what cost? Their revised deficit of $24.7 billion is almost 10 times higher than our province. B.C., with a track record of managing fiscal pressures and significant debt reduction, has had its highest credit rating confirmed twice in the past few weeks.

Colin Hansen
Minister of Finance