Provincial tax payments estimated at $6 billion come due for struggling B.C. businesses as of Sept. 30, with temporary deferrals on submitting collected provincial sales tax, carbon tax, motor fuel tax, tobacco tax and hotel tax having run out as the COVID-19 pandemic carries on.
Businesses pleaded for more time to pay, but B.C. NDP leader John Horgan says the temporary deferral has worked, and its intent was to take administrative pressure off small businesses, not to forgive what is owed.
B次元官网网址淭he objective of deferring that was to not put another burden onto small businesses to do their regular remittances,B次元官网网址� Horgan said at a campaign stop in Surrey Sept. 30. B次元官网网址淭he money is there, the money will be transferred. The objective was to take the pressure off businesses and I think we accomplished that.B次元官网网址�
As the coronavirus pandemic dragged on into summer, the Business Council of B.C. recommended the deferred payments be extended to the end of 2020. Former finance minister Carole James considered that option and rejected it, along with a proposal by the B.C. Liberals to waive the payments entirely for up to 90 days this spring and summer.
James did extend the instalment payment deadline for the NDP governmentB次元官网网址檚 new employer health tax through to January, as employers adjusted to a new payroll cost to replace revenue lost when Medical Services Plan premiums were phased out this year.
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Horgan pointed out the key difference between those taxes that guided the governmentB次元官网网址檚 choice.
B次元官网网址淭he PST, the carbon tax are taxes that are collected directly from consumers,B次元官网网址� Horgan said. B次元官网网址淭hose are taxes that consumers pay. The employer health tax is a tax that employers pay.B次元官网网址�
B.C. Liberal leader Andrew Wilkinson said the reality for tourism and other businesses is that they need more temporary assistance.
B次元官网网址淚n Victoria the hotels are empty,B次元官网网址� Wilkinson said at a campaign stop in Port Moody Sept. 30. B次元官网网址淭he souvenir shops are going broke.B次元官网网址�
Wilkinson was in Port Moody Sept. 30, promoting a much larger tax break in the form of eliminating PST for an entire year if he is elected premier on Oct. 24. He wants to bring it back the following year at a three per cent rate, which he says would leave $1,700 more in the pocket of the average family of four. That would add an estimated $8 billion to provincial deficits that are headed for nearly $13 billion this fiscal year without the PST break.
Business Council chief policy officer Jock Finlayson recommended to HorganB次元官网网址檚 government that the tax payments should be deferred to the end of 2020 but no further. It amounts to a loan to struggling business with little impact on the deficit because interest rates are at historic lows.
tfletcher@blackpress.ca
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