HST raised consumer prices in July

The BC Conservative Party says that the switch from provincial sales tax to Harmonized Sales Tax caused a jump in the consumer price index in July in both BC and Ontario, and it is calling for increased HST exemptions to counter the impact.

Although the BC government has claimed that HST is revenue-neutral, that claim is now being challenged by the realities of the consumer marketplace. In a media release yesterday (August 21, 2010) BC Conservatives president Wayne McGrath said “That shows the HST is not revenue neutral as the government kept telling us and this was just another tax grab as we knew all along.”

“The HST is slated to go through the legislative process and since the government brought in the HST there is every reason to believe that they will stall and defer the legislative process which will ensure no change to their plans. British Columbians need relief now in the form of increased exemptions from the HST, McGrath said. “The government needs to lessen the load for British Columbians now by removing more items from the tax,” McGrath added.