After much waiting with anticipation, Elections BC announced today that we have voted to scrap the Harmonized Sales Tax, moving back the 5% GST and 7% PST. YAY for us! But with all the politics aside, what happens now? I feel it’s bound to be a loose loose situation for us consumers.
Remember the good old system access fee that was scrapped a few years ago? What the cellphone companies did was increase the cost of their rate plans to accommodate for the loss. So if we stayed with the new 10% HST and voted NO, the product cost will still go up as usual, and the consumers will end up paying more to get less.
As for voting YES to scrap the HST, we now have to spend more tax payers’ money to move back to the old system. The BC government also has to pay back the fund they received from the federal government for the transition into HST, as well as cutting budgets on various departments to account for the loss in tax revenue.
It’s a circus show really.
Now that I think about it, how did the HST ever get put into place so quickly, yet taking 18 months to go back? What really should have been done was to let us vote before the HST, or make a better effort promoting it to us.
All that being said, Nova Scotia has a 15% HST. I guess it’s time to take out the pots and pan and start cooking from scratch!