Delta Chamber of Commerce

The BC Chamber of Commerce, representing chambers/boards of trade in the province, started to recommend 20 years ago that the two levels of government blend the current provincial sales tax with the federal GST or Goods and Services Tax. The BC Chamber resolution to harmonize the two tax systems has been before the provincial government since 2002.

“After all this time, the Delta Chamber of Commerce is encouraged that some action has finally been taken to improve the competitive position of BC,” says Delta Chamber of Commerce Chair Greg Muirhead.. “But there is still far too little information from the government about the program and we are concerned about the negative impact on many businesses, whether they are our members or not. So while we support in principle the provincial government’s harmonization of the two sales taxes, we are far from endorsing the program. We need to study the program in full and consult with our members before we can reach a decision of endorsement.”

One small business advantage of the HST is the elimination of a major burden of time and service expenses required to process the payment of provincial sales taxes, achieving savings which could be passed on to the customer. On the other hand, many of those businesses, in the clothing, restaurant, housing and tourism industries among others could face expenses likely higher than those savings because they will now have to pay the provincial portion of the HST when they have not been paying a provincial sales tax to date.

“What is the final impact on the consumer in each industry and how might consumer reaction harm businesses in those industries are the kinds of questions we are asking. Even we, the chambers of commerce and boards trade, as not-for-profits, are not sure whether we are exempt, along with municipalities and charities. We are still waiting for more details from the provincial government.

“We in the provincial chamber network have been asking for this harmonization to happen for many years, and we are encouraged by reports from the Atlantic provinces where HST in recent years has lowered business costs overall, but we would like to hear much more from the provincial government about how this program is going to be implemented and whether there might be any mitigating aspects to it. So we do not endorse the HST program at this time.”

The Delta Chamber of Commerce is a 400-member association of businesses in Delta acting as the voice of business locally, provincially and nationally, and providing discounted services, learning opportunities and business networking to its members.

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CONTACT:
Greg Muirhead, Chair
Delta Chamber of Commerce
604-351-2920