B.C. business owners fight HST

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      Vancouver fitness guru Ron Zalko has been pumping up opposition to the harmonized sales tax for months. In a phone interview with the Georgia Straight, he estimated that “thousands” of people have signed the anti–HST petition at his Kitsilano gym.

      After the HST is introduced on July 1, his clients will have to pay an additional seven percent on their memberships, on top of the five-percent GST. “Those who provide fitness and health and keep people from being sick get punished,” Zalko said.

      He added that a taxi driver recently told him about his concerns regarding the HST. It will add seven percent to the cost of fares. According to Zalko, the man said that every time there is a price hike in the industry, he gets fewer passengers and his income falls.

      Zalko then copied former U.S. president Ronald Reagan’s famous comment about the Berlin Wall by declaring: “I would say, Mr. Campbell, tear this HST down.”

      Fight HST, the group led by former premier Bill Vander Zalm, claimed on June 14 that it has collected 653,240 signatures opposing the tax. This is equivalent to about 40 percent of the number of people who voted in the 2009 B.C. election.

      Another Vancouver businessperson who’s collecting signatures is Gabriel Yiu, a former provincial NDP candidate and the owner of three flower shops. He told the Straight by phone that the B.C. Liberal government is spreading false information by suggesting that the HST will help businesses save on administration costs.

      Yiu said that it only takes him three minutes each month to file provincial sales tax with the government. “At the end of the month, the computer provides those figures: the total sales, how much PST we collected,” he claimed. “By removing that, it doesn’t save us any personnel. It doesn’t save us much time.”

      However, it will cost his business some money. Yiu said that’s because merchants receive a 6.6-percent commission from the government for collecting the provincial sales tax up to a maximum of $198 per month. “That means in an entire year, we almost got $2,400 in commissions,” he said. “After the HST comes in, this commission will be gone. Actually, it’s not a small amount for a small business.”

      Proponents of the tax, including Premier Gordon Campbell, say that companies will be able to obtain refunds for sales tax they pay in the course of doing business. According to the B.C. government, this will collectively reduce business taxes by $1.9 billion per year.

      Yiu said that while this may be true, his company will have to charge higher prices for flower deliveries because couriers will be forced to charge an additional seven percent. “With an additional seven percent, it will make some of our business disappear,” he claimed.

      Ian Tostenson, president and CEO of the B.C. Restaurant & Foodservices Association, told the Straight by phone that the HST could lead to some big job losses in B.C.’s food and beverage sector, which he characterized as a $10-billion industry. If business were to drop by the same amount as the new meal tax—seven percent—that would translate to a loss of 12,000 jobs and $700 million in revenue. He said that if business fell by only 3.5 percent, that would mean a loss of 6,000 jobs in his industry.

      Prior to the 2009 election, Tostenson joined several other business-association heads in condemning the NDP platform, alleging that the party would hike job-killing payroll taxes. He didn’t express regret over this, claiming that the B.C. Liberal government has been very good for business.

      “I’ll probably get shot for saying this: it’s possible that HST, in the long term, is good for the economy,” Tostenson said. “I get it. Most business guys get it.”

      He suggested that the real problem is the soft economy. Tostenson said he recommended that the government phase in the tax over two or three years to ease public concerns and maintain consumer confidence.

      “I think the optics of that, politically, were probably not that great,” he said. “You don’t want to keep having a tax coming each year.”

      Does the harmonized sales tax favour big businesses over small companies?

      Ian Tostenson
      President and CEO, B.C. Restaurant & Foodservices Association

      “The larger and more traditional a company is—we’re talking forestry, mining, fishing—those types of industries will benefit. They have a lot of input costs and they make a lot of capital purchases.”¦It’s not beneficial to restaurants because you don’t pay HST on labour and you don’t pay HST on food. So there is no tax for you to capture.”

      Ron Zalko
      Anti–HST campaigner and owner, Ron Zalko Total Body Fitness & Yoga

      “The big businesses can write off and do their reconciliation. They’ve got big spending and big returns. For them, it may be profitable. I think this is what Mr. Campbell is trying to say to us. But the small businesses? I don’t think they’ll benefit from it because, you see, the bottom line is the consumer. Are they going to pay the extra [seven percent] or not? No, they won’t.”

      Tami Reilly
      President, Get Organized for Success

      “I’ll have smaller expenditures, but I would have that same benefit to my company [as a big firm gets with the HST]. The other hat, of course, is as a consumer, as a mother, and a person that needs to buy their normal goods in society. That’s where I’m going to be taking the money I saved in my company and just spending more personally to cover the additional seven percent charged on things.”

      Gabriel Yiu
      Former NDP candidate, anti–HST campaigner, and owner of three flower shops

      “For a small business like us, we’re not capital-intensive. We could claim [a rebate] if we buy a cash register or a computer.”¦The problem is, how often do small businesses buy computers or cash registers? But, say, for a big mining company or a big forestry company? Yeah, this is quite a big amount of tax that they could save. But for small business, we’re not benefiting.”

      Comments

      18 Comments

      NDB

      Jun 16, 2010 at 7:46pm

      Why is it that Colin and Gordon act like they are the only smart guys in the room when it comes to this issue? Its almost like they are saying "the $650,000 people who signed the petition don't or can't understand the HST, we know better." That is arrogance, pure and simple.

      They need to be recalled even if the HST is abolished.

      glen p robbins

      Jun 16, 2010 at 8:34pm

      I'll bet since polling -- and loving to talk to regular people -- my favourite time in life--I've talked to as many people as Bill Good Jr. -"What are you thinking---?" If people trust you -- (and (more) often if they've had a couple) -- they provide tremendous -- brilliant insight. ( I hope God accepts me after all the random genius I have stolen over the years)

      --I can't believe the BC Liberal government doesn't know this about small business or their friends in the restaurant---------this is what everyone has been vomiting about---there isn't one shred of evidence anyone was consulted over this--the shift of sovereignty described by Vander Zalm and Delaney -- the sense of breach of trust "Treason" from blogger Jim Van Rassel--and the sense of solidarity of mindset -- that literally everyone in the province knows what just happened to them -- and they have already turned to defend.

      Stunning -- it may be ugly now//it's likely to get worse -- it can only get better--Campbell represents a kind of recession of good faith -- the 'soul --hope -- he simply does what he pleases--you can't lead like that -- it's got to be a collective decision. I am not afraid of British Columbians-- I wait to embrace them.

      It's bottom drawer disgraceful on Campbell - and Hansen its what us country boys from Saanich, BC used to call---- shasta shitty pants (ssp).

      Fun is smoking a joint with Casey Walt - former great rugby prop with James Bay Bays -- and Canada.

      Angrygranny

      Jun 17, 2010 at 12:47pm

      In our small city, we have had 4 more businesses, close their doors. The "new" carbon tax of 4.45, has raised the price of goods trucked in. Their heat bills, are 6% more. Hydro is going up, graduating up to 33%. The HST was going to kill them, so they bailed before they lost everything. The fellow across the street, has a wife and 3 little kids. He is frantically trying to sell his house before he loses it. He has no idea where to go to find a job, there are no jobs here for him. Campbell, Hansen and the BC Liberals went on a taxing frenzy, because, of the horrendous financial mess they have made in this province. They did the most stupid thing ever, it is so now, people have no money to spend. Communities are going underground and are setting up the barter system, so far it is growing very well. Huge vegetable gardens, winter greenhouses, chickens, eggs, beef, pork, turkeys, are for barter or for much less cost, paid in cash. We have plumbers, electricians, roofers, painters, you name it we have them, they work for cash, or barter. Flour, sugar, coffee and tea, will be purchased for cash, in our locally owned stores. Every community must be able to feed themselves, within a 100 mile radius. Start by having a meeting with your neighbors and local farmers, it catches on like wild fire.

      Gail

      Jun 17, 2010 at 1:09pm

      I have had to cancel my gym visits. I have had to sell my car, insurances on cars and houses have gone up. Gasoline went up May long week end, and now there is another 4.45 hike, and another rise on July 1st. Home heat will be 6% more. Hydro is graduating up to 33%. Food costs have gone up 27%. Phone and cable has the HST applied, and so does everything else, from soup to nuts. The arm of, the HST is very long, there is very little not taxed by, the budget and the HST together. My neighbor gave me a number, to contact the people who are setting up the underground and barter system. This is going to really help, the low income families, seniors, and the people on Social Assistance. This is the way it was during WW11, you eat what you grow.

      Little Money vs Lots of Money

      Jun 17, 2010 at 1:21pm

      Because that is where the comparision STOPS as the little guy adheres to his neighors in his neighborhood as HST is hurting them its a hurting business.

      bye bye liberals

      Jun 17, 2010 at 2:52pm

      I have voted Liberal all my life but this is the last straw the arrogant " don't worry about it children daddy knows best " " yes its ok little ones you can cry all you want but I am the head of the household and what I says goes "

      Well Daddy Campbell no matter what you say or do I and many many of us will be voting against you because of the HST and the fact you are way too comfortable where you are and do I need to mention the 100's of millions of dollars spent to promote one of the most livable city's in the world via the olympics and yet you can't come up with a few extra million for our schools or MRI's ? now that would be a legacy not the fact we now have some big ramps so we can watch someone go really fast on two pieces of wood.

      One last thing people did you know that we the tax payer gave free insurance to vanoc gm vehicles I quote from a news source "
      As of May 5, there were 4,679 claims worth $2,300,392.34. Expenses paid, for the costs of towing and storage, were $8,697.57." you and I paid that!

      Mr Campbell so long its been good to know ya have fun getting a job at one of the many big corporations you work for..

      PS don't drink and drive!

      Morty

      Jun 18, 2010 at 11:26am

      Gail wrote:

      "I have had to cancel my gym visits."

      Blame the gym. The HST hasn't kicked in yet.

      "I have had to sell my car, insurances on cars and houses have gone up."

      Insurance is not subject to the HST. Which hasn't kicked in yet.

      "Gasoline went up May long week end,"

      due to demand,

      "and now there is another 4.45 hike, and another rise on July 1st."

      The HST on gasoline and other vehicle fuels will be rebated at the pump. And it hasn't kicked in yet.

      "Home heat will be 6% more. Hydro is graduating up to 33%."

      The tax on electricity is dropping from 5.4% (5% GST + 0.4% provincial levy) to 5%—the provincial portion of the HST will be subject to rebate. When it kicks in.

      "Food costs have gone up 27%."

      If that were true, which it isn't, it would be due to demand. Groceries are exempt from sales tax and will continue to be. When the HST kicks in.

      "Phone and cable has the HST applied,"

      Local telephone service and basic cable will increase by 7%. Long distance, cell phones and specialty cable channels are already subject to both GST and PST, so they won't change. When the HST actually kicks in.

      "and so does everything else, from soup to nuts. The arm of, the HST is very long, there is very little not taxed by, the budget and the HST together."

      Groceries. Municipal water. Insurance premiums. Transit and ferries. Resale housing. Health and dental care. Prescriptions. Music lessons. Child care. Legal aid. Children's clothing. Diapers. None of these will be taxed by the HST. When it kicks in.

      "My neighbor gave me a number, to contact the people who are setting up the underground and barter system."

      Which people? And if you're setting up a barter-exchange network, you can apply for tax-exempt status. There's no reason to take it underground.

      "This is going to really help, the low income families, seniors, and the people on Social Assistance. This is the way it was during WW11, you eat what you grow."

      And you paid taxes to support the province and the nation, just as you're being asked to now.

      In conclusion: You just made all of this up, didn't you?

      Gordon C

      Jun 18, 2010 at 11:29am

      You're wrong! You're all wrong! Wrong wrong WRONG and I'm right! Just pay the tax and understand that the benefits are too complex for you to understand.

      cooley

      Jun 18, 2010 at 9:37pm

      one word: cash

      Wow

      Jun 19, 2010 at 9:09am

      Imagine that - the very small businesses the bigwigs that came out in support of the tax pretend to represent, blowing off the HST as hurtful.

      I sincerely hope this puts a dagger in all of the pro-HST propaganda floating around lately.