B.C. Liberals promise to eliminate PST for one year

The B.C. Liberals have promised to immediately eliminate the Provincial Sales Tax if they get elected on Oct. 24th

Leader Andrew Wilkinson told a news conference Monday the current 7 per cent tax will be eliminated for one year, followed by cutting it to three per cent in year two until the economy recovers from the COVID pandemic.

“British Columbians have lost confidence in the direction of the province and the weak economic record of the NDP. B.C. families and small businesses need help now, which is why a BC Liberal government will immediately eliminate the PST for one year – saving you money right away, getting more people working, and bringing investment back to B.C.,” said Wilkinson.

Wilkinson calls it the first major pillar of their economic plan focused on helping all British Columbians get through the biggest economic challenge in generations.

“Countless people are still out of work, small businesses are facing bankruptcy, and the public health threat from COVID-19 is still very real,” added Wilkinson. “Eliminating PST puts more money in people’s pockets, stimulates growth for struggling small business, and helps British Columbians who are struggling to get by. This is a vital step to rebuild our economy.”

Under the B.C. Liberal proposal, a family of four earning $60,000 per parent will save $1,714 in the first year alone, followed by an additional $979 in the second year.

The party leader said the tax break will help consumers across the entire province, give businesses a boost when they need it most, and attract investors who have been scared away by massive NDP tax increases.

“Everybody pays the PST, so everybody saves under the BC Liberal plan,” said Wilkinson.

Critics say program cuts will result from the PST change which the Liberals say will mean $6.8 billion in lost revenues in the first year and $3.9 billion in the second year.

NDP Leader John Horgan said he hasn’t seen an analysis of the plan but says Wilkinson must tell B.C. voters what services the Liberals won’t be providing, in return.

B.C. Green Leader Sonia Furstenau said Wilkinson’s promise to cut the PST shows astounding lack of imagination

“After 3.5 years in opposition, the best idea the B.C. Liberals can come up with is a sweeping, antiquated tax cut. This shows an astounding lack of imagination,” said Furstenau.

“There are far more effective ways to spend $7 billion. This old school style of economics is not what B.C. needs to recover. We need to target our recovery efforts to the economic sectors that need it most. We need to get people back to work through high quality services like early childhood education.

Furstenau said during their 16 years in government the B.C. Liberals made countless cuts to vital social services that people rely on everyday.

“We have seen how service cuts simply create more costly social and economic problems. We need to invest in our people and in our future. We should be striving for a province where everyone has a basic level of economic security, because that will enable people to invest in themselves, their communities and in their good ideas. That is how we will recover from COVID-19,” she stated.

“The B.C. Greens are committed to finding solutions that will make a real difference to the people and businesses who need it the most. As we outline our platform in this campaign, I am confident that British Columbians will get behind our vision for building a clean, innovative economy.”