In the wake of British Columbians’ decision to reintroduce the familiar PST/GST tax system, reaction from various sectors of the provincial economy is mixed.
For the majority of B.C. restaurateurs, the return to the pre-HST sales tax structure is a welcome development.
“After months of tax policy uncertainty, our members welcome the certainty and food tax fairness that comes with (this) decision,” said Mark von Schellwitz, an executive with the Canadian Restaurant and Foodservices Association.
Under the HST, many food items in restaurants are subject to sales tax, while those purchased in supermarkets often are not — a situation von Schellwitz describes as unfair.
Among those who will suffer from the annulment of the HST is the film industry, which enjoys substantial savings under the HST, maintains North Shore Studios president Peter Leitch.
“It’s a disappointing outcome … (but) we respect the referendum decision and the need to restore the old PST/GST system,” he said.
Leitch, one of the co-chairs of the pro-HST Smart Tax Alliance, said he hopes the restoration of the PST/GST will bring new dialogue on the best type of sales tax for B.C.
John Winter, the president of the B.C. Chamber of Commerce agrees.
“The B.C. government, I think, has got now to sit down … and perhaps develop a Son-of-HST version that is a consumption tax, that is a fair consumption tax,” he said.
With files from The Canadian Press
Local news from metronews.ca/vancouver
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