The B.C. government yesterday launched a $5 million “informational” harmonized sales tax (HST) advertising campaign that will run on TV, radio and in newspapers until early July.
The campaign features a stickman character who is confused about the HST and is inspired to seek information on the government’s website.
Spending on the campaign is in addition to the $500,000 each allocated to the Yes and No sides’ campaigns and a $700,000 voter’s guide that will be mailed to every home in B.C.
Government research into the HST reveals most British Columbians remain confused about the controversial tax that replaced the provincial Sales tax (PST) last July 1.
For example, government research shows:
- 61% of survey respondents wrongly believe basic groceries have risen because of the HST;
- about half of those surveyed wrongly believe that gas prices have risen as a result of the HST; and
- 48% of survey respondents wrongly believe that electronics have gone up as a result of the tax.
“On such an important public policy issue, we want to make sure, at the minimum, that the public has the opportunity to make their vote informed with the facts,” Finance Minister Kevin Falcon told Business in Vancouver earlier this year.
“We need to be very clear that there are significant costs involved if we do not provide information to the public and they make a ‘no’ decision that will potentially result in $1.6 billion having to be pulled out of social programs and returned to the federal government.”
Falcon added that replacing the current 12% HST with the federal government’s 5% goods and services Tax (GST) and the provincial government’s PST would involve rehiring 300 civil servants “at a cost of about $30 million a year.”
He added small business owners will have additional costs because they will have to do a lot more paperwork than they currently do under the HST.
Glen Korstrom
Twitter: @glenkorstrom