Retailers urge Victoria to match Ottawa’s promised sales tax cut

Vancouver (February 14, 2006) —Retail BC today called on the BC government to lower the PST to six percent in next week’s provincial budget to match Ottawa’s promised GST cut this year. In a letter to Finance Minister Carole Taylor, Retail BC noted that British Columbians want a sales tax cut and know that it would benefit families of all income groups and communities from all corners of the province.

"BC families and border communities deserve a break," said Mark Startup, president and CEO of Retail BC. "Sales tax cuts would ease the financial burden on high-mortgaged BC families and curb the flow of cross-border shoppers to Alberta. Everyone comes out ahead."

A combined one point GST/PST tax cut would provide over $250 in savings per year to a BC family of four with a dual income of $60,000. BC consumers could save about $100 on a 50 inch plasma-screen TV and $500 on an average new car.

"British Columbians want sales tax cuts," said Startup. "The views of BC taxpayers were reflected in the Finance Committee’s recommendation last year to pare down the PST to six percent. More recently, British Columbians voted for sales tax cuts when electing the federal Conservatives and their GST-reduction plan."

Startup credited the Campbell government for trimming the PST to seven from 7.5 percent in 2004 and encouraged the government to forge further ahead.

"The experience proves that governments have nothing to lose by trimming sales taxes," Startup said. "The 2004 PST cut paid for itself. While the government anticipated a dip in revenues, the outcome was better than expected -- PST revenues were equal to the original budget forecast.

The BC government collects about $4.5 billion per year in sales taxes. A combined one point GST and PST cut would return over $1 billion per year to BC consumers.

—30—

For further information, contact:

Mark Startup

President and CEO T: 604-730-5252 M: 604-970-0489