Today, the Provincial Government received the results of the HST referendum. The outcome was decisive, with just under 55% of voters choosing to extinguish the HST and return the province to a system of taxation using both the PST and GST.
The government says no changes will occur until at least May 2013. There is no information yet on what the details of the tax system will look like at that time.
In terms of what this means to you and your clients, the HST is still in place and will be until at least May 2013
In Terms of what this means for clients, the HST is still in place and will be until at least May 2013
Maureen Enser, executive director of the Urban Development Institute, pacific, said the development sector was divided over the HST, with industrial and commercial builders favouring the administrative savings it offered.
However, she added newhome builders will be happy to see the HST go.
"The HST will be eliminated on new housing which ig good news for home buyers," Enser said. "But the difficulty is how are the transition rules going to work when you've got presale agreements?"
The industry big fear is that potential purchasers will stop buying pre-sale options for new homes untill after the HST is eliminated, "which is not good for jobs and is certainly not good for the economy," she added.
With the HST on the way out, goverenment needs to come up with an alternative tax policy that includes some of the business benefits of the HST, Business leaders said