Harmonized Sales Tax: Creating Jobs, Lowering Prices
Leading economists from across the country say the Harmonized Sales Tax is the single most important step British Columbia can take to boost its economy. Harmonizing the GST and PST will save employers $2 billion that can be used to lower prices, increase investment and create jobs.
Rebate Threshold And Transitional Rules For New Housing
The Province is proposing to increase the threshold for the B.C. HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than is currently embedded as PST.
The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010. In addition, sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010. [Rebate threshold and transitional rules for new housing] [News release]
How HST Works
Currently, PST is applied at every step in the creation of a product. Those multiple PST charges are embedded in the price you pay at the store – even though you can’t see it. And of course, you pay PST on the final purchase price.
Here’s an example of how PST is hidden in the cost of a very simple made-in-B.C. product: a 2x4. Under the current system, taxes are paid at every step in production and passed on to consumers. Under the proposed HST system, those embedded costs are removed and savings can be passed on:
Click for Printable HST Graphic
Under the current PST system, embedded PST results in higher production costs, less investment, fewer jobs and lower wages. The proposed HST will save B.C. businesses about $2 billion and result in more investment, jobs and higher wages.
More Information:
The following resources are in PDF format, up to 500KB
- Benefits for Families and Consumers
- Benefits for Low-Income Families and Seniors
- Benefits for Home Buyers
- Benefits for Taxpayers
- Benefits for Small and Medium-Sized Businesses
- Benefits for Job Supporting Industry
- Benefits for Rural and Remote Communities
