PST on bikes?

The BC government recently announced that BC will join other provinces in a Harmonized Sales Tax. This tax will be a combination of the GST 5% and the Provincial Sales Tax of 7%.
For almost 30 years BC has offered it's residents a provincial tax break on Bicycles, related goods and services.
The provincial government will be increasing the take on bicycle sales through taxation. This same government has offered the public exemptions on various items including some children's goods and vehicle fuels. Why not exceptions on bicycles?
Is it not this government that was going on about reducing our ' carbon footprint '? Is it not a mandate to improve our carbon position? How can increasing the purchase and operating costs of bicycles possibly help this position?
Further the benefits of cycling are so clear as we move forward into a world of global warming, air quality issues and general health issues does it not seem a slap in the face to receive the added burden of deeper costs related to the purchase of cycling equipement ?
Thoughts?

agree 100% with everything you said.

a bush league cash grab by the government. i dont see how increasing taxes in an econmonical slow down will go anything other than giving certain gov't employees a nice pay raise next year for a job well done.

Nice that there was no prior notice of this before the recent provincial election. Wonder if they showed their cards before the election if the public would have voted the same way?

Obsession, maybe talk to your local mla about the issue, get some petition forms for your shop as well as for other bike shops and stores on lower lonsdale?

What I find funny is that they never said anything about this new tax during the elections. A few short weeks after they get in, bang new tax! The funny part is by next elections we will all forget about it and vote for them again. We really only have our selves to blame for that.

I wonder when the put in the PST exemption 30 years ago they had guys buying 5K DH shuttle sleds in mind.

This whole HST thing sticks of pay off from big corporations. They say that the HST will be revenue neutral, but if it is obviously going to impact our industry negatively, which industry is benefiting. One of the few things that are going to be exempt from the new HST is Gasoline. WTF??

I wonder when the put in the PST 30 years ago exemption they had guys buying 5K DH shuttle sleds in mind.

I don't think they sell that many DH bikes compared to regular bikes. That's just a drop in the bucket.

This whole HST thing sticks of pay off from big corporations. They say that the HST will be revenue neutral, but if it is obviously going to impact our industry negatively, which industry is benefiting. One of the few things that are going to be exempt from the new HST is Gasoline. WTF??

There is somewhat of a silver lining, you have a year until the law is enacted. So if you want bikes and parts while only paying the GST you have until the harmonization takes effect on July 1, 2010 to do so.

Also, regarding the HST being big and bad we have to wait and see that it will do to stimulate and attract investment to BC. While it does favour companies over individuals, the desired net effect is that it will attract more companies to come and settle in BC rather than let's say Sask or Manitoba which have two levels of taxation. The savings come from this vehicle built into the law called ITC's or Income Tax Credits which is currently only available for GST. This means that only value added taxation will occur for businesses because they are not paying PST on inputs (or inventory in case of bike shops). I don't know whether bike shops currently pay PST on their inventory, but if they do, then they will experience a savings too.

The net effect is that it's hard for the consumer in the short term, we'll be paying a bit more for goods that were previously tax exempt. The long term effect and desired effect is that businesses will pass on the ITC savings to consumers (not likely) and it will create more jobs - which is beneficial for everybody. I would rather pay PST on a bike and be assured to have a job that helps me support my family (and bikes) than not pay PST in a stale economy.

my 2 cents,
Rachid

Has it been comfirmed that there won't be an exemption for bikes?

I don't know whether bike shops currently pay PST on their inventory, but if they do, then they will experience a savings too.

Bike shops do not pay PST on their products, just GST right now, so there will be no savings for them.

I can see the reason for a tax break for commuters/kids bikes ext the under 1000 market.

outside of that why should bikes be any more tax exempt than any other recreational toy.

The net effect is that it's hard for the consumer in the short term, we'll be paying a bit more for goods that were previously tax exempt. The long term effect and desired effect is that businesses will pass on the ITC savings to consumers (not likely) and it will create more jobs - which is beneficial for everybody. I would rather pay PST on a bike and be assured to have a job that helps me support my family (and bikes) than not pay PST in a stale economy.

my 2 cents,
Rachid

That is a big assumption, and not one likely to come to fruition. The government is on a jobless economy stimulus plan so it can be agreed that creating jobs is not a top priority at the moment or in the next 6-12 months.

Also, you're hoping that jobs will be created as a side effect of the harmonization. This is much less certain than absolutely no tax on certain products, like bikes.

I feel that the government always has alternate motives, and thus hoping for something to happen is a waste of my energy. Keep bikes exempt, but also all the other goods that were PST exempt. Harmonization is a bad call.

I can see the reason for a tax break for commuters/kids bikes ext the under 1000 market.

outside of that why should bikes be any more tax exempt than any other recreational toy.

Also a valid argument.

Consider this: the consumer is the one who will get hit the hardest, thus worsening conditions in a already fragile economy. Tax breaks on toys seems a bit superfluous, but the greater impact is worse.

for some, bikes are not just toys. just as or even more so important than a car.

Also a valid argument.

Consider this: the consumer is the one who will get hit the hardest, thus worsening conditions in a already fragile economy. Tax breaks on toys seems a bit superfluous, but the greater impact is worse.