The Harmonized Sales Tax (HST), only just now being moved through the Legislature for removal, as Bill 54, is something for which the BC Liberals must wear the blame says Columbia River-Revelstoke MLA Norm Macdonald.

Adding to the pain of the HST is the fact the region’s tourism centres were hurt by the HST, he added in a press release this week.

“The BC Liberals stated, prior to the 2009 election, that they would not implement an HST, but then promptly announced after the election that HST would begin on July 1, 2010,” said Macdonald. “People in this area were outraged. Whether it was the financial impact the new tax would have on their businesses or the fact that the BC Liberals had lied to the electorate, it was clear from the start that the majority of British Columbians were opposed to the new tax.”

Bill 54, the 2012 Provincial Sales Tax (PST) Act, is now being debated, but the PST will not replace the HST until April 1, 2013.

The hated HST resulted in people across the province taking action and an Initiative Petition and Referendum proved that British Columbians wanted it removing.

“I’m pleased that we are finally seeing the legislation to return to the PST but with only a few days left in the Legislative session, we will not have a lot of time to ensure that the true wishes of the people on this matter have been followed. The people were clear: they wanted the PST returned in the same form as it had been prior to July 2010,” Macdonald said, adding one of the many unintended consequences of the change to HST was the loss of revenue to fund Tourism BC and established funding mechanism to Resort Municipalities.

The implementation of the HST required the removal of Hotel Room Taxes, and this revenue was targeted specifically to these programs.

“It wasn’t just small businesses that were hurt, nor middle-income earners that were paying more tax with the HST, our whole tourism sector suffered.  The loss of Tourism BC was felt across the province. The opportunity to benefit from the exposure British Columbia received during the Olympics was underutilized because our award-winning tourism marketing organization was no longer operating,” Macdonald said.

“And for Resort Municipalities like Revelstoke, Golden, Kimberley, Radium and Invermere, a clearly defined source of revenue for tourism infrastructure projects was compromised.

“It’s been three years of chaos, characterized by the MLA for Kootenay East Bill Bennett as the ‘HST fiasco,’ and I’m happy that is finally working its way towards a conclusion. The implementation and withdrawal of the HST will be a defining example of the BC Liberals’ record, and one that will not be forgotten come the next election,” he concluded.

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