Report: Ditch homeowner grant, revive HST

Finance Minister Carole James has received a task force report that recommends eliminating British Columbia’s homeowner grant, taxing non-alcoholic drinks and introducing a value-added tax similar to the rejected harmonized sales tax.

James was not available for comment on Thursday, but her ministry issued a background statement saying the return of the HST is not under consideration. Neither is changing homeowner grants, the discount on property taxes for those who live in their home, the statement said.

The ministry said it regularly receives reports from experts on public policy, but it made no mention of accepting any of the report’s recommendations, other than thanking the task force members.

Those members were: former B.C. New Democrat finance minister Paul Ramsey; Prof. Lindsay Tedds of the University of Calgary School of Public Policy; and Prof. David Duff, a tax law expert at the Peter A. Allard School of Law at University of B.C.

James formed the task force last fall to provide advice on how to eliminate medical services premiums in B.C. and replace the estimated $2-billion loss in annual revenues.

However, before receiving the report, she introduced several MSP reforms, including a controversial employers’ health tax.

The task force report also recommends taxes on sugary drinks and increasing the income tax credit to ensure that low-wage earners don’t end up losing the benefits of a boost to the minimum wage.

The report says moving toward a value-added tax in B.C. could be difficult, but suggested tax credits and other initiatives could gain public acceptance.

“We recognize the difficulty with introducing a value-added tax in B.C. or undertaking any significant PST reform that is similar to a value-added tax, after the HST was rejected by the public in 2011,” the report says.

“However, with appropriate lowincome tax credit increases and basebroadening, we feel that the tax system could be made more progressive and fair in the context of changes that enhance business competitiveness,” it says.