Complicated

Lotsa people been asking me my thoughts on the upcoming implementation of the HST. It sure is a hot topic. As a retail business owner it makes my life easier and will help me lower my prices, but there are other sectors that I know are very upset, and I see their point too.

I came across this article from our MLA, its complicated, but try and read it, might help you wrap your head around it, better then all the clutter and overtones in the media.

HST:
Good public policy often does not make for good politics. Such is the case with the forthcoming introduction of the new harmonized sales tax. Since the joint federal-provincial announcement last summer, much of the debate has focused on “political hay”, rather than on the “public policy” merits of the measure.
The HST is the best public policy initiative that the federal and provincial governments can take to improve the position of Northern British Columbia’s resource-based export industries. Here’s why.
By removing the PST now paid on business inputs, most sectors of the economy will become more competitive. Approximately 40 per cent of the PST is paid by businesses on goods and services which they purchase to run their operations - machinery, equipment, office supplies, furniture, energy, legal services, among many others. With the removal of the PST, businesses will be able to invest, grow, and create well-paid family-supporting jobs.
The paperwork burden associated with the administration of the two tax regimes (PST and GST) will decline. Currently, there are duplicate sets of tax rules, administrative authorities, and compliance requirements. Estimates place these savings at $150 million per year.
Many products will decline in price once the HST is fully implemented. Most businesses will receive a 12 per cent credit on the HST they pay. In a competitive market, these savings will flow to consumers as price reductions.
On a sector basis, the B.C. Ministry of Finance estimates $880 million in savings for construction, $210 million for transportation, $140 million for manufacturing, $140 million for forestry, and $80 million for mining and oil and gas per year. These industries form the backbone of the northern resource-based economy.
There is a lengthy list of exemptions from the HST including medical and dental services; child care services; long-term residential care; residential rent; legal aid services; most educational services; groceries; prescription drugs; medical and assistive devices; agricultural and fishing products; and, most financial services. Rebates will apply to municipalities, charities and non-profits, and new housing (new houses will be HST exempt up to $400,000 while homes over $400,000 will be eligible for a $20,000 HST rebate). click here to read the rest