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New sales tax will raise costs for British Columbians

VANCOUVER - The Campbell government's sudden decision to adopt a Harmonised Sales Tax raises more questions than it answers and will result in families and seniors paying more for services at a time when they can least afford it, the New Democrats said today.

"Even the premier admits that this new tax comes out of the blue. Now British Columbians want to know how much more will they be paying for important services," said New Democrat finance critic Bruce Ralston.

"Too many families are already struggling to make ends meet, and any further hit to their pocketbooks couldn't come at a worse time."

This morning, Gordon Campbell announced he will be harmonising the Provincial Sales Tax with the federal Goods and Services Tax.  Ralston noted that this move will increase taxes on dozens of services in the province currently exempt from the PST.

"Consumers in other jurisdictions that have brought in the HST have seen taxes jump on everything from hydro bills to vet bills, and prices increase for services as diverse as eating out in a restaurant to getting a hair cut," said Ralston.

"The Campbell government needs to answer questions about what this new tax will mean in terms of increased costs for services in British Columbia."

Ralston noted that today's announcement comes as Gordon Campbell is facing increasing pressure over his broken promises to protect health and education, his failure to admit until after the election that the deficit will be significantly higher than promised, and a growing ethical cloud hanging over his office as a result of new revelations in the B.C. Rail corruption trial.

Carole James and the New Democrats have been holding the government accountable for its failure to come clean about the true state of the province's books during the election campaign.