HST Referendum

On June 24, 2011 BC's Provincial Government will hold a referendum on HST. Voters will decide whether or not the Harmonized Sales Tax (HST) is kept in place. If the HST is abolished, BC will return to the Provincial Sales Tax (PST) and Goods and Services Tax (GST) system. Ever since BC moved to the HST system there has been an public outcry against HST. The general consenous has been that the HST system results in us being taxed more and therefore it results in us having less money than before, pretty simple.

However, it is important to determine whether or not the HST is right for you. The HST system affects each individual differently. To obtain more information visit http://www.hstinbc.ca. Before you do, you will need to understand your spending habits. It is important to know how you spend your money. If you're buying a new TV, you would have paid the same amount in tax anyways, 12% HST or 5% GST and 7% PST. Essentially, you still pay 12% on "Goods" or products that you purchase. However, the difference is on services, such as restaurants and memberships. Since PST is not charged on services, you only pay GST.

Also, if you're buying a new home (a home that has not been lived in before) or car you will pay HST, instead of just GST in past. If you don't expect to buy a new home or pay for items that are deemed as services you may actually save money with HST rebates and other government benefits depending on your income and family situation. Therefore, understand your situation and get more information so that you can make an informed decision. In the end, we would like to think that we should make the decision that helps the most British Columbians. 

So how does HST affect the construction industry? It is believed that the HST system is good for the industry as whole. It is estimated that it will save the industry over $800 million. However, this depends on your company and the specific services that you provide. Visit the VRCA for more information.