The Provincial government in B.C. has announced a plan to trim the HST to 10% on the condition that voters agree to keep the unpopular tax. Under the plan the tax would be reduced in two stages. The first cut would take effect on July 1, 2012 trimming one percent from the provincial portion of the tax. On July 1 of 2014 and the second 1% cut would take effect.
To balance the loss created by the tax reductions, government would temporarily increase the general corporate income tax rate to 12 per cent from the current 10 per cent on Jan. 1, 2012, and postpone the reduction in the small business tax rate planned for April 1, 2012.