How to Save HST and Benefit both Consumers and Businesses

British Columbia HST referendum will take place as specified by the BC Legislation on Saturday, September 24, 2011. Until then, consumers will pay 12% HST and businesses will be able to claim 12% HST input tax credit.

During the remaining 11 months, before the referendum, BC businesses must convince consumers about the benefits of HST to keep it from rescinding it. The benefit of 7% additional input tax credit with HST is beneficial for all businesses.

At the present time, it seems a HST tax rate cut incentive, is the only way to keep HST in BC. A HST rate cut of 2% may convince British Columbians to vote in referendum to keep the HST.

Business community, along with sending the message to consumers the benefits of HST, must also have a solid dialogue with the BC Premier and Finance Minister about the possibility of a HST rate cut. So far, both the Premier and Finance Minister have declined to take a HST rate cut in BC under consideration.

A HST rate cut will benefit both the consumers and businesses in general. It might turn the tide around from consumers’ perspective that they are the only one, suffering from a tax increase.

With favourable support from consumers, HST in BC might keep seeing the sunlight.