British Columbia is again proceeding down the path of provincial tax reform with the appointment of Canadian economist Bev Dahlby as chair of the B.C. tax competitiveness commission. The commission aims to make business more competitive in global and national markets while analyzing tax fairness.
Originally announced in February with the 2016 provincial budget, the commission was created to modernize British Columbia’s aging tax policy, which includes a PST that was implemented in 1948.
“Many of B.C.’s taxes were designed in the early 20th century for the 20th century B.C.,” said Jamie Edwardson, communications director for the Ministry of Finance in a press release.
British Columbia has had a recent, rocky past with sales tax reform. Former premier Bill Vander Zalm led a referendum in 2011, to overturn the province’s Harmonized Sales Tax (HST) a mere 13 months after its adoption.
In a press release, the Ministry of Finance cited aging tax laws, technological advancement, globalization and the province’s shift to a service-industry-based economy as reasons for the needed change.The commission, budgeted to cost $500,000, is made up of Canadian economists and business leaders. While drawing on their personal knowledge, the commission will also carry out targeted consultations with stakeholders and the public.
While the commission aims to reform B.C.’s provincial tax structures, the Ministry of Finance says that it will respect the outcome of the 2011 referendum.
According to the Ministry of Finance’s press release, the commission will not consider returning to the HST, providing relief to specific sectors or increases to the B.C.’s carbon tax. The commission will also not determine how to fund or mitigate the impact of a decision by the commission to decrease PST or business taxes.
To provide input into B.C. provincial business and sales taxes go to http://engage.gov.bc.ca/taxcommission/
