The BC Care Providers Association (BCCPA) has been meeting with Finance Minister Colin Hansen and officials over the past couple weeks to discuss the impact of the HST on the senior's care sector. Last month, BCCPA estimated the HST represents an annual tax increase of $10.5 million for BC non-profit and private seniors' care providers.
During the meeting with Minister Hansen, BCCPA made the case that without mitigation, the HST will force care providers to lay off staff and reduce service. Over the course of our discussions we have achieved some initial positive results. So far, the Minister and his officials have confirmed the following mitigation measures:
- Residential care providers will be included in the HST exemption for hydro costs
- Non-profit care providers will be eligible for a 57% HST rebate
- The provincial government is prepared to support a request to the federal government to extend additional HST relief in the health sector
We have all agreed to ongoing discussions regarding additional HST mitigation for the health sector - particularly for private care providers. BCCPA will also continue our work with other provincial care provider associations. At September's meeting of the Canadian Alliance for Long Term Care (CALTC) in Victoria, we agreed to implement a national strategy for HST mitigation. We will keep you posted on developments in the coming weeks.
