Below is a newsrelease from the Provincial on the outcome of the BC Provincial Referendum on whether or not to keep the HST:
Action plan in place to return B.C.
to 12% PST/GST
VICTORIA – The Province will reinstate the combined 12 per cent PST
and GST tax system following the referendum decision by British Columbians to
extinguish the HST in B.C., Finance Minister Kevin Falcon announced
today.
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. The Province may make some common sense administrative improvements
to streamline the PST.
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.
Quote:
Minister of Finance 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.
“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.”
Learn More:
For more information about the return to the PST, visit: www.gov.bc.ca/fin
BACKGROUNDER
Action Plan to
Re-implement PST
An action plan has been established to ensure an effective and
orderly transition to the PST. Key phases in the transition process are
described here.
Federal Transitional Rules and Systems:
-
A
letter from the provincial finance minister to the federal finance minister is
conveying the referendum results and advising the federal government that B.C.
will re-implement the PST. -
The
Province will work with the federal government to develop HST transition rules
and to make any necessary changes to systems and processes. -
The
provincial government will begin discussions with the federal government about
exiting the Comprehensive Integrated Tax Coordination Agreement (CITCA)
including the return of the funding received for adopting the HST.
Provincial Legislation and Transitional Rules:
-
The
provincial government will develop legislation and regulations necessary to
re-implement the PST in B.C. and may make some administrative changes to
streamline and improve the PST. -
Provincial PST transition rules to mirror federal HST transition
rules will be developed. -
The
provincial government will develop other legislation and administrative programs
necessary to support the full reimplementation of the PST (e.g. hotel room tax,
etc).
Provincial Systems Development:
- The Province will develop
and establish appropriate reporting, data gathering, billing,
remittance/collection, audit, assessment and appeal processes, and supporting
computer systems to properly administer the PST and other related taxes (e.g.
hotel room tax, etc.) in B.C.
Provincial Administration:
- The Province will
re-establish its capacity to administer the tax in the areas of registration and
close of business, field and desk audit, appeals, rulings, provincial tax
information phone lines, billings and remittances, collections and refunds. This
will include staffing, facilities and equipment, and staff training to
administer the PST and related taxes. This also includes developing appropriate
administrative reporting forms and other information and communications material
required to support the transition.
Provincial Business Registration and Outreach:
- The provincial government
will register approximately 100,000 businesses as tax collectors before the PST
is re-implemented and provide information and training on the tax application,
collection, compliance and reporting rules related to the PST. By the time the
PST is re-implemented, there will be an estimated 30,000 new businesses in B.C.
with no PST experience. These businesses will need to be registered and
provided with detailed information and training to enable them to comply with
the tax law.
Business Transition:
- Businesses will need to
change their own electronic and manual systems and processes to assess, collect,
report and remit the PST and other related taxes to the provincial government.
Other Key Stakeholders:
- The provincial government
will consult with key administration stakeholders once provincial transition
rules are completed. The Province relies on partner agencies to help ensure
efficient tax collection, reporting and compliance. These agencies will need to
make a number of systems and process changes, as well as receive information and
training to help complete the PST transition.
Contact:
Matt Gordon
Communications Director
Ministry of Finance
250 356-2821
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356-2821 end_of_the_skype_highlighting
Connect with the Province of B.C. at: www.gov.bc.ca/connect
