January 30, 2006

Sales Tax Consultation

Minister of Small Business and Revenue, Rick Thorpe, has been criticized for conducting a "by invitation only" review of the sales tax, but a careful search of government websites reveals that there is a website for the "Provincial Sales Tax review and consultation process". A link to the review first appeared at the bottom of a November 29th news release.

On November 7th the Campbell government announced the appointment of it's "Small Business Roundtable". The Roundtable consists of 23 people co-chaired by Kevin Evans, Western vice-president of the Retail Council of Canada and chair of the Coalition of BC Businesses, and Linda Larson, currently mayor of Oliver and a former small business owner. The Roundtable is to "bring forward to government and the small business sector issues, strategies and potential actions to contribute to small business growth, reducing regulatory burden, improving customer service and optimizing revenue management." It will visit 16 communities as part of its consultation with small business.

The first Roundtable consultation took place in Prince George on November 29th. The news release which described that meeting with 30 members of the Prince George small business community also announced the Provincial Sales Tax review and consultation process and provided a link to a website for the tax review. At the same time a separate November 29th news release announced two new websites, one for the Sales Tax Review and one for the Roundtable. It stated that: "The review will ask British Columbians to bring forward revenue-neutral options to simplify, streamline and enhance fairness of the Province's provincial sales tax policies and legislation." Combined meetings of the Roundtable and Sales Tax review have occurred in Kelowna on December 2nd , Cranbrook on December 5th , Vancouver on January 19th, Nanaimo on January 26th, and Surrey on January 27th.

The review's website says that:

The website doesn't give the precise dates or venues, but it says that consultations will take place in Smithers, Penticton, Kamloops, Quesnel, Williams Lake and Victoria in February and in Courtenay, Fort St. John and Dawson Creek in March. Those who aren't sent a personal invitation, and that probably means you, can request to participate by sending an email to PSTReview@gov.bc.ca providing your name, business name, address, telephone number and email address, and indicating which location you would like to attend. If you are lucky enough to be allowed to speak, you will be "given 5 -10 minutes to explain the highlights of their submission and present the written submission to the Minister of Small Business and Revenue." Those who aren't lucky enough to make a short submission directly to the Minister can make a written submission.

The Sales Tax Review website lists what the government thinks are the "key issues". Citizens may have other concerns, particularly any who engage in cross-border shopping. Costco went to court to deal with demands from BC's tax collectors that it turn over records regarding the transactions of its customers with BC addresses. BC's Freedom of Information and Privacy Commissioner sent a letter to Minister of Small Business and Revenue, Rick Thorpe, advising him of his ministry's responsibilities under the Freedom of Information and Privacy Act.

Thorpe needs to be more "transparent" about his agenda. It is not wise to take on privacy issues at the same time that a "review" is supposedly looking at "revenue neutral" improvements to sales tax administration.