Eby wants federal government to level the playing field on holiday tax relief
Premier says because B.C. doesn't collect HST, residents are getting a smaller tax break than in other provinces.
By MAJENTA BRAUMBERGER
Premier David Eby expressed frustration today that the federal government’s impending tax cut will disproportionately benefit those from other provinces.
“I’m expecting in my conversations with the prime minister about this that I will hear about how he’s going to ensure that British Columbia gets the same benefit as people in other provinces from the federal dollars that they pay through their federal taxes,” Eby said at a press conference online.
The federal government announced tax relief on Nov. 21 that it claims will put more money in Canadians’ pockets with the holiday season underway. It will waive federal goods and services tax (GST) and harmonized sales tax (HST) on certain products, including food and beverages, children’s clothing and accessories, printed books, Christmas trees and some toys from Dec. 14 to Feb. 15, 2025.
On top of this, the federal government will issue $250 each to an expected 18.7 million people in early 2025 who worked in 2023 and earned less than $150,000.
Provinces with HST could see greater savings
British Columbia charges seven per cent in provincial sales tax (PST) and five per cent in federal GST. Unless the province waives its sales tax, British Columbians will only see the federal portion waived, meaning they stand to save five per cent under the government’s proposed plan.
Those living in provinces with HST, like Atlantic Canada and Ontario, stand to see greater savings at 13 per cent.
Eby said his government’s proposed middle-class tax cut will provide greater benefits for British Columbians than the federal GST/HST cut.
Students react to tax cut
Whether the federal government measures will provide tangible benefits for students remains to be seen.
Jimena Garcia Ortiz, an administrative assistant in the dean’s office at the Langara school of management, questioned the timing of the tax cut, noting that many people complete their holiday shopping before Dec. 14.
Ortiz said many international students leave Canada over the holidays, meaning they may miss out on at least part of the two-month measure.
“I think students, they can benefit more with their food and printed books. I think those are the two highest benefits,” Ortiz said.
Langara student Sahara Richards said the tax break, even with its limitations, still helps.
“I’m happy that if I don’t have to pay tax, because I live by myself, I have to get my own groceries and everything, so it adds up,” Richards said.
Other Langara students, like Delphina Ho, said the tax cut is unlikely to make a significant difference.
“Personally, it doesn’t really affect me because I live with my parents. So, most of the groceries and stuff, they pay for it,” Ho said.
Langara student Jiya Singh said she was excited to learn about the $250 rebate.
“I’m surely going to spend that on my clothes,” Singh said.