BC businesses adjusting to return to PST
Posted April 1, 2013 2:39 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – The PST is back in BC, and some businesses are struggling with what it means. It’s expected to be a bumpy ride this week, as merchants adjust to the tax landscape.
It’s been a long night for bicycle store owner Kevin Corkum, who was collecting the HST until La Bicicletta closed at 5 p.m. yesterday, and then prepped his store for the new tax regime.
“We had to go item-by-item and switch… from HST to PST and GST, or GST only. So, for us last night, it was 29,000 items.”
Corkum says his customers will be happy, since they’ll now pay less for bikes. But it will mean more work for him, something Brent Hardy at Westward Floors echoes.
“On an ongiong basis, basically you’re dealing with two taxes as opposed to one,” says Hardy.
The Canadian Federation of Independent Business expects to hear about confusion among its members about what’s PST-exempt.
Customers have mixed feelings about return of the PST
Some shoppers are glad they can save a few bucks, others don’t think they’ll notice a difference.
With the change back to the old tax system in place, News1130 spoke with customers about the impact the change will have on their lives.
“I’ve been told I just saved 60 cents on buying stamps, so there you go…60 whole cents in my pocket and possibly more to come,” says Julie.
“I haven’t checked my bill as of yet, but when I get home I’ll itemize everything that I spend today and we’ll see how much of a savings occurred. Any type of savings I can get, is obviously a benefit to me and to the economy,” adds John.
Some may see a big change on more expensive items and services like home renovations or when dining out.
“I guess at the restaurants you’re going to pay quite a bit less, but on an individual purchase I don’t think you’re going to notice a massive difference,” adds Ian.
But others like Tonya have a more of a negative view of the change. “I’m waiting to see what else they raise, because I know somewhere they’ll get us along the way,” she says.
Many people think it’ll take a few weeks before they start seeing cash — if any– building up in their bank accounts.
