Friday, August 26, 2011

BC to Axe the HST

Well, 54% of us voted to axe the HST, so as soon as the wheels of bureaucracy start turning we will be back to our two tax system. It's estimated that it will cost the taxpayers over 3 billion dollars to revert to the old system including the 1.6 billion incentive from the federal government.

When we get back to the old system the only change you will immediately see in the comic shop is 5% instead of 12% on monthly comics. Graphic novels will remain at 5% because books are only taxed the GST portion.

Somehow the Provincial Government will have to make up the shortfall by raising taxes and/or cutting services. Don't be surprised if they extend the PST to books, restaurant meals, haircuts etc. In addition, many businesses that pay PST on stock will have to pass those price increases along, not to mention the added cost of calculating and remitting taxes to two departments

The masses have spoken and the deed is done but I'm going to miss the (short term) good old days.

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