Tax & Accounting Blog

British Columbia – Chamber of Commerce Calls for a VAT

Indirect Tax, ONESOURCE, Transaction Tax June 11, 2013

With the HST only a few months behind them, the British Columbia Chamber of Commerce is calling on the Provincial Government to consider implementing a provincial value added tax. The BC Chamber, which represents more than 125 Chambers of Commerce and 36,000 businesses in the province, is urging the provincial government to make tax reform a top priority. According to group the Provincial Sales Tax regime, to which the province returned to this year after the HST was rejected in a provincial referendum, is bad for business and stunts growth. In a recent interview B.C. Chamber of Commerce president John Winter stated that the PST makes the cost of doing business particularly high for manufacturers. “If you’re in the manufacturing field in particular you pay taxes on everything you buy, and all the inputs that you have, and you have no way of reclaiming any of that other than selling the product at a very high price,” according to Mr. Winter.

The Chamber is also calling for some immediate changes while talks on a new tax are taking place, including expanding PST exemptions for machinery and equipment purchased by businesses.

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