VANCOUVER – Standard & Poor’s has confirmed British Columbia’s triple A credit rating just days after the province voted to scrap the Harmonized Sales Tax.
The agency noted that B.C. had solid revenue and the expenditure flexibility necessary to meet its deficit targets.
It notes B.C. faces a number of challenges in the wake of the scrapping of the HST.
They include the loss in revenue, initial administrative costs of going back to the provincial sales tax and federal GST, and the likelihood of having to reimburse the federal governmnent for $ 1.6 billion in HST transition funding.
B.C. finance minister Kevin Falcon says the credit agency’s confirmation of the province’s rating is a reflection of the “fiscally conservative” approach the government has taken.
British Columbians voted to dump the province’s 12 per cent HST in a mail-in referendum.
The tax was introduced by former premier Gordon Campbell more than two years ago, but the massive public uproar to the tax cost Campbell his job and ultimately led to the demise of the HST.
Local news from metronews.ca/vancouver
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