For Immediate Release

February 20, 2007

BC retailers welcome $515 million income tax cut in lieu of PST cut

Victoria, BC— Retail BC applauds a $515 million income tax cut in today’s provincial budget, the equivalent of nearly a one point sales tax reduction.

“The retail sector will continue to thrive as consumers are left with an additional $515 million in disposable income to dedicate to discretionary spending,” said Mark Startup, president and CEO of Retail BC. 

“Whether consumers receive the benefit in terms of a one point PST cut or a 10% income tax reduction is inconsequential.  What matters is that they are permitted to keep and spend more of the wealth they have created.”

Retail BC commends the BC government for continuing to build a stronger foundation for simplified sales tax regulations and opportunities for a lower PST rate.

“The reforms identified by the Provincial Sales Tax Review Committee will assist retailers by streamlining and simplifying procedures and extending the monthly remittance date.

“The forecasted billion dollar surpluses and record high sales tax revenues (rising by $200 million per year on average) are paving the way for greater opportunities to lower either income tax or sales tax rates in future budgets,” said Startup. 

Retail BC is the voice of over 3,000 retail companies within British Columbia.  BC’s retail industry generates over $50 billion in sales and employs over 250,000 British Columbians.

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For further information, contact:

Mark Startup

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