British Columbians won’t receive an HST rebate even if they vote down the unpopular tax in next year’s referendum, finance minister Colin Hansen said today.
Though voters will technically cast ballots on former premier Bill Vander Zalm’s draft HST Extinguishment Act — which includes a proposal to refund HST revenues on a per capita basis — the B.C. government won’t pass his bill in the legislature, Hansen said.
“In my opinion it would not be responsible for any government or any legislature to commit to passing the HST Extinguishment act as it is currently drafted,” he said.
A refund would be “almost administratively impossible,” said Hansen. “The ramifications of trying to unwind the HST and retroactively re-impose the provincial sales tax would not be practical.”
Instead, the Liberal government is developing its own plan to extinguish the HST should a simple majority of citizens vote to repeal the HST, he said. That plan won’t include a rebate, he said.
An outraged Vander Zalm blasted the Liberals for ignoring the law, as outlined in the Recall and Initiative Act. The draft bill was approved by both Elections B.C. and a B.C. Supreme Court judge during a challenge by big business groups earlier this year.
“We went through a process according to law,” he said.
“We went by the legislation. They can’t ignore the act. A dictator would do that. They have a law and they let us go through a whole process for a whole year to work within the law and now they say we’re going to ignore the results?”
A legislative committee this week sent Vander Zalm’s petition to extinguish the HST to a non-binding provincewide vote, scheduled for Sept. 24, 2011.
If 50 per cent of B.C.’s registered voters vote in favour of repealing the HST — including 50 per cent in at least two-thirds of the 85 electoral districts — then Vander Zalm’s bill, as written, must be introduced into the house for a vote.
It’s a steep threshold, considering only 50 per cent of registered voters bothered casting a ballot in the 2009 election.
But Hansen reiterated Tuesday the government will cancel the HST, under its own terms, if only a simple majority of people in the referendum vote against the tax. Vander Zalm’s bill, which forms the legal basis of the referendum, won’t be considered.
The HST refund is not even the main issue, said Vander Zalm.
The former premier said he’d agree to drop the refund from the draft act if government would agree to hold the vote this year, amend the law to include its promise of following a simple majority and allow his Fight HST group to help word the referendum question.
Vander Zalm said he also wants government to promise not to spend taxpayer dollars fighting his group prior to the referendum. Hansen said it is likely the government will register with Elections B.C. as an opponent so that it can advertise against Vander Zalm’s bill.
The referendum could cost as much as $30 million, Elections B.C. has said.
The HST came into effect July 1.
If B.C. backed out of its deal with Ottawa, it would have to return $1.6 billion in transitional funding, as well as cease HST rebate cheques for 1.1 million people, rebuild its provincial tax system and absorb a number of additional costs, said Hansen.
“If the voters of British Columbia go out and vote against the harmonized sales tax there will be consequences,” said Hansen.
The finance minister said he has faith that British Columbians will vote in favour of the tax once they understand its benefits to businesses and the economy. The public must also ask itself how it intends for its government to pay for services, and whether that is through increased taxes or some other means of generating money, said Hansen.
The exact wording of the referendum will be decided by the province’s chief electoral officer, in consultation with government, but must be clear and free of any political games, he said.
“The referendum is not about whether we did a good job of rolling out the harmonized sales tax. I think the jury is in on that one and we know the answer, we did not do a good job, again, for all kinds of reasons,” said Hansen.
“But the referendum is an opportunity for us to get past that and to say to British Columbians lets focus in on the merits of harmonizing our sales tax, the merits of getting rid of the old provincial sales tax system. Let’s have that debate and then the voters can decide.”
[Times Colonist]
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I GUESS TREVOR IN NOT TIRED OF THE LIBERAL GOVMT TALKING TO HIM LIKE HE WAS A MORON…CAUSE HE IS…HAHAHAH…THIS GOVMT HAS DONE NOTHING BUT LIE, AND NOW THEY ARE BEING CAUGHT…AND LOOK HOW MUCH MONEY THEY HAVE GIVEN AWAY THIS WEEK, THEY ONLY GIVE AWAY “OUR” MONEY WHEN THEY ARE IN TROUBLE…OH WHAT A WONDERFUL PROVINCE WE LIVE IN
Now a day it is very easy to file your taxes online and get your tax refund. Turbotax, H & R block, taxact, freetaxusa, taxbrain, completetax this all are provide online tax filinng services. e filing is the best option for all tax payers.
ah, the Liberal spin doctors are out in full force, dont fall for it people, these people are brutal, and their only objective is to stay in power no matter what it takes.
they will do or say anything to get re-elected.
If I read my cards right the Liberals will be totally decimated in the next election.
They know thats what is going to happen, and they are now going to make out lives very miserable.
Freedom and democracy – its all about the “People”,
Why does Hansen keep saying that we would have to repay $ 1.6 billion? As far as I’ve seen B.C. has only taking a portion of that money ($260 million). In addition, the Liberals counted on the public seeing it would be a messy job refunding the HST. The public is pretty predictable, Oh well it has gone through and it would be a mess to refund so we might as well go along with it. They planned that. Thirdly, they are being deceitful again by making statements like “where are we going to get the money for health care or schools”? This is not extra money. It is simply moving almost $2 billion dollars from one source to another. If they wanted extra money they could have left the business community paying their pre-July 1 taxes and getting an extra 1-2 % extra tax from us. These liberal are unbelievable. Such liars.
more lies, well, campbell gone, and Hanson has “seems to have gone underground” ha ha, keep hiding Hanson, you are number 2 on the hit list, and yes we do want our “refund” from the HST tax, this is a tax 90 percent of the people do not want, you went ahead anyway, taxation without representation has been the downfall of many governments, and all you are doing is making history repeat itself.
I really dont want you to quit, better recall and then when you try and get reelected you will see the true feelings of your voters.
your problem is you say you know best what is good for us: well, your the only one that is saying that and that is you and their is 700,000 saying no its not good for us, so lets see 700,000 against 1 (you) . Goodbye Hanson, see you at Wendys take out window.
People need to know the facts on the HST both pros and cons. First off it cuts the cost of the Provincial government. Also the money is needed because we keep demanding more and more government services. Cost are going up so no HST would likely mean higher income taxs for all British Columbians. Forget the media, Fight HST, personal political predjeduces against the Liberals and NDP, and look at the facts and make up your own mind.
Margret Thatcher, I believe once said “What is popular with the people is not always the right thing to do.”
Are we willing to risk an increase in debt, caos for businesses, caos for government, and possibly and increase in income taxes to get rid of the HST?
If are going to keep demanding more health care, more government servies in general then we have to be prepared to pay for it! These services are not free!
Hey Jeff. I think we all realize that all government programs cost money. Why should the lower class foot the bill and big business get the big breaks? It seems if the govmnt needs money for something it wants(like the Olympics) it somehow comes up with it. These scare tactics the Liberals are playing claiming caos and no money for programs and increased income tax do not work with BCers. We can see through the smoke and mirrors and do not believe for a minute that the sky is going to fall.
I have not seen or felt any change in government services that would make me want to keep the HST. They want to close my hospital and they are trying to take the schools now too. All this AFTER the HST was implemented. Baloney! Show me better services and I will support the HST. Until then, throw it out!
Hey, I have been away from Canada for nearly 3 years. I have see how governments work or for that matter don’t work in some parts of the world. Thailand, Myanmar, Laos are prime examples of what happens when people are left with very little for services while the guys at the top get it all. Very little is done with tax money in these countries except line the pockets of the elite.
The BC government under the liberals have damaged consumer confidence by acting without the will of the people. Small business is being murdered. Lower income people are feeling the pinch. It just doesnt do what it was suppose to.
If this party was for the people we would be finding another way to stop these tax hikes. Some taxes are needed, yes, that is for sure, but I am forced wonder why have to pay taxes on everything now, even used goods that have already been taxed previously. I believe we need to look at alternative solutions to big taxes.
Glad my work takes me over seas and I their is no tax on goods at all. Just income tax which is moderate. What a joke.