Provincial Finance Minister Colin Hansen popped in to the CHBA-BC Board meeting on Friday to comment on the state of the economy and, of course, the HST. He said there are signs of economic growth in B.C. and the province is expected to fare better than the rest of Canada. The province is just shy of setting new employment records and the retail sector is reporting record highs for sales. He said the province is operating at a $1.7 billion deficit but expects to emerge from a deficit situation by 2013. He said he knew last summer the HST was going to be a tough sell but he still believes HST will be good for B.C. He said there is still lots of cynicism around HST (you think?). When asked about the likelihood of a provincial tax credit for home renovations to help combat the growing underground cash economy, Hansen said this issue is “still very much an active file.” When asked how he came up with the $525,000 HST threshold for new homes (raised from the original $400,000), Hansen answered, “to be perfectly honest, right off the top of my head.” With that reasoning, I can’t help thinking if the minister were a taller man, the threshold might have been set at $750,000.
Written by: Peter E. Simpson for the GVHBA Monday Morning Briefing
Date: June 21, 2010