Canwest News Service July 23, 2009

VICTORIA – B.C. Premier Gordon Campbell announced Thursday his intention to combine the provincial sales tax with the federal Goods and Service Tax next year, calling it “the single biggest thing we can do to improve B.C.’s economy.”

The proposed Harmonized Sales Tax would add the seven per cent B.C. PST with the five per cent GST for a 12-per-cent tax on most products and services effective July 1, 2010.

A statement released Thursday from both Campbell and Finance Minister Colin Hansen said the federal government would contribute $1.6 billion to help businesses ease into the transition to HST.

The B.C. government estimated that combining the two taxes into one would save businesses in the province about $2 billion, mostly through “sales tax removed from business inputs.”

The statement said the HST would be the lowest harmonized tax in Canada. Nova Scotia, New Brunswick, Newfoundland and Labrador, and, as of July next year, Ontario, will have all instituted a 13-per cent HST.
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[Canada.com]