BC Chamber Applauds Harmonization Announcement

July 22, 2009

NEWS RELEASE

BC CHAMBER APPLAUDS GOVERNMENTS ANNOUNCEMENT TO HARMONISE PROVINCIAL
AND FEDERAL SALES TAX

FOR IMMEDIATE RELEASE

Vancouver, July 23, 2009 – Chambers of Commerce from across the province today welcomed the bold and timely announcement from the provincial government that BC will be harmonizing its sales provincial sales tax with the federal Goods and Services Tax effective July 1, 2010, an issue member chambers reaffirmed as a priority for government at its recent Annual Meeting.

“Harmonization of BC’s sales tax with the federal GST is one of the most important policy directions we can put in place today to position us for a strong recovery at the end of our current economic difficulties,” explains John Winter, President and CEO of the BC Chamber of Commerce. “With the commitment to harmonization and the other measures announced regarding personal, corporate and small business tax the provincial government must be congratulated for creating the most competitive taxation regime in North America.”

The new tax will as a true value-added sales tax which would apply to the same goods and services as the GST while maintaining some existing exemptions under the current provincial sales tax.

“This measure saves business money and reduces government expenditures while providing protection for those on low-incomes,” continues Winter. “In addition to these savings the consumer will also be a winner as business will pass the savings they make, such as $150 million annually in compliance costs alone, onto the consumer in the form of lower prices”

“Small business across the province are supportive of because not only is this good news economically, this is particularly good news for small business,” states John.  “Small business are the tax collectors for government so this measure will remove the need for small business to deal with an unreasonable and complicated tax this will allow us to focus on growing our businesses and creating jobs,”

 For further details contact;

 John Winter

President and CEO

BC Chamber of Commerce

C 604.376.3577

E jwinter@bcchamber.org