B.C. Liberal leader Andrew Wilkinson speaks in the legislature, Feb. 26, 2020. (Hansard TV)

B.C. Liberal leader Andrew Wilkinson speaks in the legislature, Feb. 26, 2020. (Hansard TV)

$5 billion fall tax bill too much for B.C. business, NDP told

PST, employer health tax, hotel tax may come due Sept. 30

B.C.’s budget deficit is currently pegged at a record $12.5 billion, as the NDP government faces the beginning of a wave of business closures due to the COVID-19.

That’s four times the size of the last big deficit in 2012, when the B.C. Liberal government had to buy its way out of a rejected harmonized sales tax deal with Ottawa. And current B.C. Liberal leader Andrew Wilkinson has repeatedly proposed bringing it up to $15 billion, by forgiving the first 90 days of deferred taxes that Finance Minister Carole James has set for repayment by the end of September.

Collected but not remitted sales and hotel taxes, along with the government’s new employer health tax on payrolls, will total about $5 billion by fall, Wilkinson told the B.C. legislature July 15. Businesses who have been “running on fumes” for four months aren’t going to be able to repay it, he said.

James kept the door open to extending the repayment deadline, but has not commented on granting the tax holiday that Wilkinson has argued for in a series of letters to Premier John Horgan. The repayment schedule will be reviewed “well before we get to Sept. 30,” James said in question period.

“I’m afraid that kind of answer will be cold comfort to the thousands of businesses that are facing huge tax-deferred bills coming due this September, for which the minister refuses to provide an answer,” replied Abbotsford West MLA Mike de Jong, who preceded James as finance minister. “Families are facing work uncertainty or outright unemployment.”

RELATED: B.C. moves to allow three years of budget deficits

RELATED: B.C.’s potential deficit $12.5 billion as spending soars

The Business Council of B.C. has not endorsed the idea of a tax holiday, but it is calling for an extension of the payment deadline through 2020 and a staged repayment plan that could extend to the end of 2021.

“With a very slow economic recovery and the enormous damage inflicted on many economic sectors by the virus and the measures taken to contain it, we believe there is a strong argument for extending the 2020 tax deferrals until the end of the year,” BCBC chief policy officer Jock Finlayson told Black Press Media July 16. “We are not recommending an extension beyond that point.”

With an uncertain future for the COVID-19 pandemic, which has plunged B.C. government revenues as spending has ramped up, accumulated debt is also a key factor.

“From an accounting perspective, the government is not ‘losing revenue’ with tax deferrals,” Finlayson said. “ Rather, it receives the money due with a delay. The only cost to the treasury is the interest paid on the extra short-term debt – which today is substantially less than one per cent. So there is very little impact on the size of the deficit.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Getting enough Vitamin D can be challenging for Canadians, especially during winter months. (CONTRIBUTED)
ACTIVE LIVING: The ‘sunshine vitamin’ plays a vital role in our health

Port Alberni registered dietitian Sandra Gentleman writes about health issues

Courtenay-Alberni NDP MP Gord Johns gives a thumbs up to active transportation during a presentation of the Alberni Valley Chamber of Commerce's Bike SEAT program at McLean Mill National Historic site in Port Alberni on April 16, 2021. (SUSAN QUINN/ Alberni Valley News)
QUINN’S QUIPS: MP Gord Johns takes victory ride for cycling strategy

Johns gained a reputation as the bicycle-riding MP during his first year

A B.C. Centre for Disease Control map showing new COVID-19 cases by local health area for the week of April 25-May 1. (BCCDC image)
Vancouver Island’s COVID-19 case counts continue to trend down

Fewer than 200 active cases on the Island, down from highs of 500-plus earlier this spring

Volunteers from the Alberni Valley Enhancement Society release a bucket filled with 5,000 coho fry into Kitsuksis Creek on the bridge at Batty Road, Saturday, April 24, 2021. (PHOTO COURTESY DAVID HOOPER)
Volunteers release thousands of coho fry into Port Alberni creeks

Fry come from small hatchery on McLean Mill National Historic Site

In the five years since the Dry Creek flood abatement project was completed, the pathway built behind commercial buildings on Third Avenue has become overgrown with Scotch broom and other weeds. (PHOTO COURTESY RANDY FRASER)
‘New’ Dry Creek path falls into disrepair in Port Alberni

City’s land access contracts lapse as condition of pathway beside creek deteriorates

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

A sign indicating face coverings are required by the establishment is pictured on the front door of a business in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
A sign indicating face coverings are required by the establishment is pictured on the front door of a business in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
B.C. to start releasing neighbourhood-specific COVID numbers after data leak

Documents obtained by the Vancouver Sun show cases broken down by neighbourhoods

Ladysmith RCMP safely escorted the black bear to the woods near Ladysmith Cemetary. (Town of Ladysmith/Facebook photo)
Black bear tranquillized, relocated after wandering around residential Ladysmith

A juvenile black bear was spotted near 2nd Avenue earlier Friday morning

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix update B.C.’s COVID-19 situation at the B.C. legislature, April 29, 2021. (B.C. government)
B.C.’s COVID-19 case count creeps up, seven more deaths

445 people in hospital, 157 in intensive care

Summerland’s positive test rate is much higher than surrounding local health areas, according to internal BC CDC documents. (BC CDC)
Summerland 3rd behind Surrey, Abbotsford in daily per capita COVID-19 cases

Interior Health is rolling out additional vaccine availability to the community

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Amazon is pausing its Prime Day marketing event in Canada this year amid ongoing COVID-19 outbreaks at its facilities in Ontario. THE CANADIAN PRESS/Nathan Denette
Amazon Prime Day halted in Canada due to COVID-19 outbreaks in warehouses

The event was postponed to protect the health and safety of employees and customers, the company says

Ally Thomas, 12, seen in an undated family handout photo, died on April 14 from a suspected overdose. Her family says they are frustrated more public supports weren't available when they tried to get her help. THE CANADIAN PRESS
Minister says suspected overdose death of 12-year-old pushing B.C. to ‘do better’

Minister Sheila Malcolmson of Mental Health and Addictions says the government is working ‘as hard as we can’ to build a system of care for youths

At this Highway 3 check point, police officers will be asking for identification from drivers, documentation regarding the driver’s name and address, and the purpose for the driver’s travel. (RCMP)
No fines handed out at 1st COVID-19 roadblock as checks move across B.C.

Cpl. Chris Manseau says a total of 127 vehicles were stopped at a roadblock in the Manning Park area

Most Read