British Columbia will pay back, interest free, $ 1.6 billion in federal HST transition money over the next five years, the province announced Wednesday.
The money was given to the province to help implement the harmonized sales tax, which was to have replaced the combined federal goods and services tax and provincial sales tax. Voters in a province-wide mail-in referendum subsequently rejected HST last summer.
The repayment will be booked into the 2011-12 fiscal year, but the payments will actually be made over the next five. The federal government agreed to waive any interest charges over the five years.
Local news from metronews.ca/vancouver