Harmac pulp mill near Nanaimo: forest products companies are major users of electricity.

B.C. considers business sales tax relief

Finance Minister Mike de Jong considers giving up $160 million in provincial sales tax revenue added to business electricity bills

B.C. is the only place in North America that charges sales tax on business electricity bills, a cost the finance ministry is considering removing to help the struggling forest and mining industries.

The issue was identified in November when an expert panel on tax competitiveness reported back to Finance Minister Mike de Jong. It noted that the province takes in $160 million from provincial sales tax (PST) on electricity bills, part of a generally high-tax environment for business and investment in B.C. relative to the national average.

[See commission report below]

Last week, mayors of eight forest-dependent communities wrote to de Jong and Premier Christy Clark, asking for PST relief for lumber, pulp and paper producers in their communities.

“Communities in rural B.C. are not experiencing the same economic growth enjoyed in Lower Mainland communities,” wrote the mayors of North Cowichan, Quesnel, Vernon, Port Alberni, Mackenzie, Powell River, Taylor and Port Alice.

“Eliminating the PST on electricity for businesses is meaningful action you can take that would not only help the forestry industry and the jobs it supports, but will also benefit the mining industry and other energy-intensive job creators in our province.”

The finance ministry issued a statement Tuesday acknowledging that de Jong is “considering this proposal along with many other spending priorities as we prepare the upcoming provincial balanced budget and longer-term fiscal plan.”

Energy Minister Bill Bennett said the issue has come up over the years, but the Commission on Tax Competitiveness report has created a “unified focus” among groups including the B.C. Business Council, the B.C. Chamber of Commerce, the Vancouver Board of Trade as well as mining and forestry associations.

It would be a cabinet decision that would only be revealed when de Jong tables the provincial budget Feb. 21.

“Taking PST off the purchase of electricity would help pulp mills, would help the sawmills, would help the mines,” Bennett said Wednesday. “It would help small business, and B.C. is one of the only, if not the only jurisdiction that charges sales tax on purchase of electricity.”

The commission found that B.C.’s PST is an impediment to investment in machinery and equipment, which it found to be the third lowest of any Canadian province.

CommissionOnTaxCompetitiveness Nov 2016 by Tom Fletcher on Scribd

Just Posted

Trail councillors will all be acclaimed

One Trail candidate has withdrawn, leaving six remaining candidates to fill the six council seats

Under the Trail big top

The Trail Sk8 Park broke ground in July, completion is expected next month

RCMP: Trail wildfire investigation continues

The fire broke out behind KBRH the late afternoon of Sept. 11

What you see …

If you have a recent photo to share email it to editor@trailtimes.ca

Storm the Stairs and Trail Kidney Walk this weekend

Grapevine: Events in the Trail area for the week of Sept. 20 to Sept. 26

Fashion Fridays: Rock some animal print

Kim XO, lets you in on the latest fall fashion trends on Fashion Fridays on the Black Press Media Network

More than 35 B.C. mayors elected without contest

No other candidates for mayor in the upcoming local election in 22 per cent of B.C. cities

Legal society poster seeks complainants against two cops on Downtown Eastside

Pivot Legal Society became aware of allegations made against the officers after a video circulated

Jury to deliberate in case of Calgary man accused of murdering woman

Curtis Healy could be convicted of first-degree murder, second-degree murder or manslaughter

House arrest for man who abused disabled B.C. woman, then blamed her

‘Groomed complainant’ and ‘violated position of trust,’ judge says

Liberals want to know what Canadians think of legalized weed

The federal government will comb social media for Canadians’ pot-related behaviour

Ex-Trump lawyer Cohen boasts of aiding Mueller investigation

Cohen could provide information on whether Trump’s campaign co-ordinated with Russians

Landslide forces evacuations of Philippine villages

More than 1,200 people in villages near the landslide-hit area were forcibly moved by authorities

Students asked about the positive effects of residential schools

Alberta’s education minister apologized after hearing about the online social studies course

Most Read