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Your B.C. Government

Harmonized Sales Tax

What your B.C. Government is doing to boost investment, job creation:

  • On July 1, 2010, B.C. intends to have the lowest Harmonized Sales Tax (HST) in Canada, at a single sales tax rate of 12 per cent.
  • Tax reform is the single biggest thing we can do to improve B.C.’s economy and is an essential step to encourage new investment, spur growth, create jobs and make B.C. more productive and competitive through the economic recovery and into the future.
  • Proposed measures to help consumers include:
    • A provincially administered point-of-sale rebate for home energy;
    • Rebates for new-home buyers, consumers of motor fuels and other products;
    • And a HST credit to benefit more than 1.1 million low-income British Columbians.
  • British Columbia’s decision represents a historic breakthrough, and is a powerful signal to international investors. This decision brings us into line with five other provinces and more than 130 countries, including 29 of the 30 OECD countries.
  • It is estimated the HST will remove over $2 billion in costs for job-supporting B.C. businesses - an estimated $1.9 billion of sales tax removed from business inputs and an estimated $150 million annually in compliance costs.
  • The HST is estimated to save the B.C. government $30 million in administrative costs annually.
  • Savings will include about $880 million for the construction industry, $140 million for manufacturing, $210 million for the transportation industry, $140 million for the forestry sector, and $80 million for mining and oil and gas.
  • Once passed by the provincial and federal legislatures and fully implemented, HST will reduce the effective tax on new business investment by 40 per cent and make B.C. one of the most competitive jurisdictions in the industrialized world for new investments. To increase business competitiveness in Canada, the federal government will provide B.C. with transitional funding of $1.6 billion to create a made-in-B.C. solution.
  • The new single sales tax will create jobs and generate long-term economic growth that, in turn, will generate more revenue to sustain and improve crucial public services.
  • Implementation will immediately reduce costs and enhance the competitiveness of B.C. manufacturers and exporters both nationally and internationally.
  • Since 2001 the B.C. government has taken significant steps to reduce taxes to improve the competitiveness of the B.C. tax system for business. Corporate income taxes have been reduced and corporate capital taxes have been eliminated.

For more information:
Taxes for businesses
Modernizing B.C.'s regulations
Information for tax professionals