BC NDP

VICTORIA - The B.C. Liberal government's surprise announcement of a new, $2 billion tax on consumers will bring an end to dozens of exemptions for environmentally-friendly choices, the New Democrats said today.

"During the election campaign, the B.C. Liberals staked their credibility on claims that they were encouraging consumers to make green choices. But now that the election is over, they've broken their promises and instead are scrapping millions of dollars in incentives and tax exemptions for sustainable products like bicycles, green building products and fuel-efficient cars," said New Democrat environment critic Rob Fleming.

Under the B.C. Liberals' new HST, tax exemptions for dozens of environmentally-friendly products will be eliminated, including for fuel-efficient vehicles, electric scooters, biodiesel, insulation on pipes and hot water tanks, and investments in clean home energy technology. Some of these, like the credit for bicycles, have existed for decades.

"The B.C. Liberals have completely betrayed the modest list of PST exemptions in their so-called 2008 'Green Budget'," said Fleming. "The Campbell government is taxing and threatening potential new green jobs and economic activity in green building, retrofitting, and retailing sustainable products."

New Democrat finance critic Bruce Ralston noted that, when former Finance Minister Carole Taylor introduced a number of PST exemptions for environmental goods in 2008, she stressed the importance of these measures for encouraging green choices.

When introducing these measures, Taylor said "Each of these initiatives brings us one step closer to the future that we envision for our province. It's a future where we leverage our action on climate change in ways that support our quality of life and our economy with new innovations, new ideas and new technologies."

Hansen has said that although "it was nice for the province to be able to say, well, this is exempt and that's exempt", losing these exemptions for green products is one of the "things that we give up" under HST.

Fleming noted that the province's total exemptions allowed under the new tax will be capped at five per cent of the gross annual sales of all taxable good and services, and that the B.C. Liberal government has chosen to dedicate most of these exemptions to fossil fuels.

"Almost all of the remaining tax exemptions allowed under the B.C. Liberals' new sales tax are taken up by the credits for gasoline and motor fuel, leaving no room for the government to create tax policy exemptions for consumers who want to purchase environmentally-friendly items like Energy Star appliances and windows, heat pumps, solar energy installations and bicycles," said Fleming.

"It's the height of hypocrisy for this government to campaign on a platform highlighting incentives for green choices and promising not to bring in a new sales tax, and then to turn around after the election and do just the opposite," said Ralston.

"Finance Minister Colin Hansen's about-face on a new sales tax has caught consumers and many small businesses by surprise. With small businesses and families across the province struggling to make ends meet, now is not the time to catch British Columbians off-guard with a new tax without any consultation."

Carole James and the New Democrats have been holding Gordon Campbell accountable for his broken election promises, including his promise to protect health and education and his failure to admit until after the election that the deficit will be significantly higher than promised.