BC Agriculture Council Welcomes Proposed Harmonised Sales Tax
Abbotsford, BC – The BC Agriculture Council (BCAC) is pleased with today’s announcement by the Premier and BC Finance Minister Colin Hansen that the Province intends to harmonize the Provincial Sales Tax (PST) with the federal Goods and Services Tax (GST) effective July 1, 2010."This will have a significant and positive impact on agriculture overall, and is consistent with what our members have been calling for," said BCAC chair and Abbotsford‐area turkey producer, Garnet Etsell.
For years the BCAC has been filing annual submissions for additions of items and services to the PST exemption list for bona fide farmers. The system has been frustrating for both farmers and retailers, so the BCAC had made a considerable effort to work with government on the development of alternative options. The proposed harmonized tax is consistent with BCAC requests for changing the current system, as it will streamline and simplify the process.
The direct financial benefits will not be as significant for agriculture as for some other sectors because of the current PST exemption list, but the BCAC’s previous estimates suggest that the savings could be over $15 million per year. "The BCAC intends to work with government to ensure that farmers and ranchers will receive the maximum possible benefit from the measures put in place to implementation of the new system," said Etsell.
Across British Columbia, over 60,000 people are employed by the primary agriculture and processing sectors. Farm gate sales total $2.3 billion and food processing accounts for $6.6 billion in revenue. "We recognize the fiscal challenges facing the Province," noted Etsell, "so we are pleased that creative measures are being taken to help agriculture contribute to BC’s economic, environmental, and social fabric."
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For further information:
- Andy Dolberg, Executive Director
- 250 388-5453
- Garnet Etsell, Chair
- 778 808-5691
- BC Agriculture Council
- #230 – 32160 South Fraser Way
- Abbotsford, BC V2T 1W5
- Phone: 604 854-4454
- Fax: 604 854-4485
- www.bcac.bc.ca
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