A B.C. Liberal government-commissioned panel delivered a report today that says there would be an immediate benefit to families by overturning the harmonized sales tax, but the decision has longer term consequences.
The immediate benefit would be, on average, another $350 in families pockets.
Going back to the provincial sales tax and the goods and service tax system would mean turning away from the gradual future economic benefits expected with the HST, reported the panel, which was chaired by former-Alberta finance minister Jim Dinning.
Remaining with the HST would retain a simpler tax system used by more than 140 other countries and a more competitive economy, said the panel.
The panel -- acknowledging its hard to put concrete numbers to future benefits -- estimated that by 2020 under the HST system the economy would be $2.5 billion larger than under the PST.
That's an increase of just more than one per cent.
"The choice B.C. voters face in the upcoming referendum comes down to looking carefully at the implications of each option -- there are pros and cons to each sales tax system, as well as implications for British Columbians as consumers, taxpayers, workers and families," said Dinning.
Other panel members included former-B.C. auditor general George Morfitt, Coastal Capital Savings president and CEO Tracy Redies and Simon Fraser University professor emeritus John Richards.
