In late July, Premier Gordon Campbell and Finance Minister Colin Hansen announced plans to harmonize the Provincial Sales Tax (PST) with the national Goods and Services Tax (GST). The 12 per cent Harmonized Sales Tax (HST) comes into effect July 2010.
Following the announcement, the BC Care Providers Association (BCCPA) was one of the first provincial organizations to express strong concern regarding the direct negative financial impact the HST may have on seniors' care. Like most sectors, care providers throughout the province were not consulted about the HST.
Initial estimates in Ontario, where the HST was announced months ago, suggest it could cost care providers there over $12 million - with layoffs likely.
These costs are attributed to residential seniors' services that only require GST now, including:
- employee development
- housekeeping & laundry
- resident outings & travel
- building maintenance
- contract services & vocational therapists
- refuse removal & pest control
- landscape & snow removal contracts
During the recent provincial election, the Government of British Columbia promised the HST would not be accepted here.
