It is baccckkkkkk! Return to the PST—how will it impact local businesses?

Photo courtesy of strogg 

The return to the PST will have a ripple effect across Burnaby, from city hall down to the swimming pool.

Councillor Dan Johnston said even city hall will feel the change. The switch will “marginally increase the cost of office supplies” and the city will lose the goods and services tax rebate they have been getting.  In terms of Burnaby citizens though he says they will see a positive impact in parks and recreation costs. Even with an increase of golf fees voted in by council last month— $1 on weekdays per game and $2 for weekend games —the return to the PST will mean golf fees will still be lower this year than they were last.  

This is an important part of the story because Burnaby is quite known for its golfing and recreation. We have four golf courses and they are often very busy. Also our 24 recreation facilities are well used. Bonsor Recreation Complex has approximately one million visits a year of people coming to take classes, exercise in the pool or work out in the gym. Staff at Bonsor said prices will go down, for things like swimming sessions, by seven per cent as of April 1 which has meant a revamping of their cash registers.

Burnaby resident and business student Carrie Walkker says for local businesses it is mostly going to be a hassle to convert back to the PST. Examples of updates the average small business owner needs to do include changes to sales equipment, such as cash registers-to show the two tax rates-price lists, payment software as well as formulas and spreadsheets for expense accounts.

Mike Klassen, representative of the Canadian Federation of Business B.C. told reporters that the move back to the provincial sales tax from the HST will cost the average small business $3000.

With Burnaby having half of all the film studio space in B.C, the return to the PST will undoubtedly have a negative impact the industry, which is already reeling, and on our community. In Ontario the film production is considered a type of manufacturing. In B.C. that is not the case so the PST will mean an extra seven per cent cost. Many in the film industry, including Paul Clausen, vice president of Burnaby's Mammoth Studios, fought hard to keep the HST and now that is gone, have to deal with the fall out.

While the harmonized sales tax was vastly unpopular and ultimately voted out 18 months ago, it had its advantages for small businesses. Notably, the HST only required businesses to report to the federal government four times a year with the PST businesses have to report to the province every month.

 Also, “on a bright side, the B.C. government is now in control of the rate the PST is, and what is and isn't taxable which could lead to some future exemptions if lobbied for,” said Carrie Walkker.