The B.C. Liberal government announced Thursday it will be seeking public input on how the harmonized sales tax could be changed to get people to vote in favour of keeping the new tax.
While new Liberal Premier Christy Clark moved up the date of the vote to June 24 from September, the public has until July 22 to have their mail-in ballots into Elections B.C.
The "talking taxes" pubic engagement process will begin next week, and the HST changes will be known before the vote, B.C. Finance Minister Kevin Falcon told reporters during a news conference to release the details of a $1.7 million information campaign.
"Everything is on the table," said Falcon, referring to the possible HST changes.
The talking taxes process will include provincewide telephone town halls, meetings with a wide variety of groups and a website where people can suggest improvements.
Stressing that the cost of any changes to the HST would need to be examined against the backdrop of balancing the budget, Falcon said that reducing the 12 per cent HST and providing relief on certain items are up for consideration.
Falcon noted that, for example, if people were interested in reducing the HST by three per cent, they have to know that will reduce revenues to government by $2.5 billion.
"Part of what we're trying to do is listen to British Columbians and see if there is a responsible way that we can improve the HST in an effort to try and bring as much of the public onside to support what, at the end of the day, we believe is very sound tax policy," said Falcon.
"Having said that, we recognize this is the public's choice. And the public will decide what is the right thing," he said.
Falcon acknowledged it would be tough to convince British Columbians the HST was a good tax, but he promised not to use a "hysterical" campaign.
He said it's why the province is providing $500,000 to be spilt between the no and yes sides, which will be administered by independent decision maker Stephen Owen, a former provincial ombudsman and federal MP from Vancouver.
Another $500,000 is being provided to universities and colleges to host public forums on the HST. The government will also spend $700,000 on a HST guide to be sent to all households that will explain the vote on the tax and provide views on keeping the HST, and returning to the former system.
Falcon said the B.C. Liberal government will also be launching its own information campaign but did not have a cost for that yet. That information campaign includes the "talking taxes" input process.
Transportation Minister Blair Lekstrom, who resigned from B.C. premier Gordon Campbell's cabinet over the implementation of the HST, said he wishes this public discussion had taken place 18 months ago. However, Peace River South MLA said he was pleased it was going ahead now. "I think it's a good day," he told reporters.
Prince George anti-HST campaigner Eric Allen said the move by the government to make changes to convince people to vote for the HST, means they will have to mount a huge campaign to fight the tax.
He's also concerned that the mail-in ballots will be forgotten during the summer period that starts at the end of June.
"If you don't watch out, you'll be stuck with this tax for the rest of your life," said Allen, who recently joined the fledgling B.C. First Party. "There is no way this is going to go quietly into the night."
The HST ballots will be mailed starting June 13, and all British Columbians should receive their ballot by June 24.
The Referendum question:
Are you in favour of extinguishing the HST (Harmonized Sales Tax) and reinstating the PST (Provincial Sales Tax) in conjunction with the GST (Goods and Services Tax)? Yes/No.
HST facts
- The 12 per cent harmonized sales tax, which came into effect July 1, 2010 replaced the federal five per cent GST and the provincial seven per cent sales tax. Its introduction caused a public furor, and, in part, led to the resignation of Premier Gordon Campbell half way into his third term.
- The introduction of the HST means consumers pay the provincial seven per cent portion of the HST on some new items including meals, domestic airline tickets, funerals, haircuts and new homes over $525,000.
- The B.C. Liberal government argued introducing the HST was the single biggest action the government could take to boost the ailing economy. The Liberals say the $2-billion savings from the HST to the business sector will be reinvested in the economy and passed on to consumers.
- Critics said it was a huge, unfair tax shift from corporations to consumers.
- The B.C. Liberal government decided to move to put the HST to a vote after anti-HST forces led by former-B.C. premier Bill Vander Zalm launched a successful initiative petition that gathered more than 700,000 signatures provincewide.
