OTTAWA — The House of Commons on Wednesday overwhelmingly passed legislation enabling the provinces to harmonize their sales taxes with the federal GST, clearing the way for Ontario and British Columbia to implement the HST this summer.

The federal HST bill passed by a vote of 253-37. Only the NDP opposed the legislation.

Both Ontario and B.C. plan to combine their provincial sales taxes with the federal goods and services tax on July 1.

Economists estimate that combining the tax will save businesses in Ontario billions, because firms will no longer have to pay tax on inputs such as materials and supplies. But the tax has outraged some consumers, who will see a rise in the amount of tax they pay on items such as gasoline in Ontario, and phone and cable bills in B.C.

Eighty-two per cent of British Columbians and 74 per cent of Ontarians oppose the tax, according to a recent Ipsos Reid survey commissioned by Canwest News Service and Global National.

The public backlash has put considerable pressure on MPs from Ontario and B.C., exposing cracks in the ranks of both the Conservatives and the Liberals.

By Andrew Mayeda December 9, 2009

This week, Conservative MP Dona Cadman, who represents the riding of Surrey North, said she would vote against the federal HST bill. Cadman did not attend the vote on Wednesday evening.

Other Tories were expected to fall in line with the government, but some are clearly not happy about it. “I don’t get a vote on the HST, and you know that,” said Larry Miller, the Tory MP for the Ontario riding of Bruce-Grey-Owen Sound, after leaving a meeting of the Conservative caucus on Wednesday.

Chief government whip Gordon O’Connor declined to comment Wednesday when asked if Cadman would be disciplined for breaking party ranks. “That’s an internal matter and I’m not going to discuss that,” said O’Connor, meaning that Conservative MPs would be expected to vote with the government.

Earlier this week, Liberal MP Keith Martin, who represents the B.C. riding of Esquimalt-Juan de Fuca, said he would not show up for the vote. Liberal Leader Michael Ignatieff announced last week that his party would support harmonization, as the Liberals did for years while in power.

Asked why Martin was allowed to miss the vote, Ignatieff said before the vote that it was a “disciplinary matter.

“We have maintained the unity of the caucus on the HST, and I’m very proud of the way that caucus has reacted to a difficult and tough decision, which we think is the right one,” the Liberal leader told reporters.

Earlier Wednesday, the Ontario legislature passed a bill that enables a 13 per cent HST to be come into effect. The enabling legislation passed by a vote of 56-29, with both the provincial Conservatives and NDP opposed.

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