The Harmonized Sales Tax (HST) will not become a merged replacement of the PST and GST.

Almost 55% of B.C. voters who took part in a prolonged mail-in referendum, voted to quash the HST, with 45.27% voting to keep it.

The provincial riding that wanted the HST the least was Surrey-Green Timbers, with 75.5% of voters opposed to it.

On the flip side, the riding that most favoured the implementation of the HST was West Vancouver-Capilano, with 35.5% of the voters wanting to scrap it.

Locally, the Columbia River-Revelstoke riding was the 10th least in favour of the HST, with 66.2% of voters opposed to it. In the Kootenay East riding, 60.2% of voters were opposed to the HST.

The results are an indication of what happens when you lie, said Columbia River-Revelstoke MLA Norm Macdonald, noting citizens of the province stood up and made a statement to the ruling Liberal Party, which fumbled the HST ball before the game began, souring voters.

“The story begins with the BC Liberals’ pre-election promise not to implement the HST.  Within weeks of winning the 2009 election, the BC Liberals broke that promise.  A seven per cent tax was added to hundreds of items.  A $2 billion tax burden was shifted away from corporations onto individuals,” noted a press release from Macdonald.

“The broken HST promise was a wake-up call to thousands and thousands of British Columbians. People were fed up with being lied to and people across the province began to organize themselves to fight against the tax,” he said, adding his office was immediately inundated with phone calls, letters and emails from people who were angry about the HST after it had been installed.

“In this area, it was absolutely clear that the majority of people strongly opposed the HST and very quickly an anti-HST volunteer organization formed in Columbia River – Revelstoke,” Macdonald noted.

“I joined hundreds of local volunteers who gathered signatures on the HST petition.  It was incredible to be part of such a diverse group of engaged citizens who were simply fed up with government’s lack of respect for democracy.”

The anti-HST petition was the first successful use of the Recall and Initiative Act to force a referendum on an issue, Macdonald pointed out.

“Without those committed volunteers, the successful HST petition would never have been filed, Premier Campbell would not have been forced to resign, and this referendum never would have happened.  It’s a remarkable example of public engagement making a big difference,” he said, adding it is now time for Premier Christy Clark to “end the HST debacle and get down to the business of governing.

“Now it is time for Premier Clark to act on the will of the people, and provide a real plan that provides British Columbians with fair taxation and the quality public services that they deserve.”

Kootenay East MLA Bill Bennett did not respond to e-KNOW’s request for comment.

District of Invermere Mayor Gerry Taft hailed the demise of the HST in a Facebook post: “It’s true that B.C. has to repay $1.6 billion to the Federal Government, but that was money that we received in return for some lost provincial tax revenue and to helps with the pain and suffering the HST brings to the province. Getting our sales tax system back is worth repaying the money, think of it as an interest free loan. When they say it’s going to “cost” $3 billion to go back to PST, that is a lie. We have to repay $1.6 billion and the BC Libs are predicting “lost revenue” from what was supposed to be a “revenue neutral” tax of $1.4 billion. The actual costs of going re-starting the PST will be much, much less and we can design a tax system that works for B.C.,” Taft stated.

Meanwhile, there is no time to lick wounds and be blue, said Finance Minister Kevin Falcon.

“British Columbians have made their choice and we will honour that decision. Now more than ever, government must provide British Columbians economic stability and focus our attention toward growing our economy to create jobs and balancing our budget in a time of global economic uncertainty,” Falcon said.

“We will work as quickly as we responsibly can to return to the PST. We have always been clear that, as the independent panel found, dismantling the B.C. HST and returning to the PST will take time to do properly. I can assure British Columbians PST will not be applied to such items as restaurant meals, haircuts, bikes and gym memberships – just as it was before the HST was introduced in B.C,” he added.

The province will reinstate the combined 12 per cent PST and GST tax system and an action plan has been established to guide the transition process and help ensure an effective and orderly transition from the HST to the PST plus GST system in B.C.

The PST will be reinstated at seven per cent with all permanent PST exemptions and the province may make some common sense administrative  improvements to streamline the PST, noted a press release from the Ministry of Finance.

The transition period is expected to take a minimum of 18 months, consistent with the report of the independent panel on the HST. During this period, the provincial portion of the HST will remain in place at seven per cent. Eligible lower-income British Columbians will continue to receive the B.C. HST Credit until the PST is re-implemented. The B.C. HST credit will then be replaced by the re-implemented PST credit. During the transition period, the Province will provide quarterly updates on the progress of returning to the PST.

“It’s a disappointing decision that will have a profound impact on the economy, on business, on workers and on unions,” said John Winter, President and CEO of the B.C. Chamber of Commerce. “While we respect the outcome of the referendum and the need to restore a PST/GST system our members have been clear, we need a dialogue on what that looks like and how we can create a tax system that protects B.C. jobs,” he said, adding, “Given the fact that the vote was close and this vote signifies the beginning of a negotiation process with the federal government we do not need to make any hasty decisions. Now is not the time for decisions, now is the time for reflection and a pause before we determine the best type of tax.”

“Returning B.C. to a sound fiscal footing and balanced budgets is critical to our long term prosperity,” Winter said. “With a $1.6 billion bill to pay, B.C. will be forced to extend the province’s deficit-reduction schedule or incur new tax hikes and/or spending cuts. Business confidence, certainty and jobs are at risk.”

Ian Cobb/e-KNOW

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