The HST is so important to B.C.鈥檚 business community, it is quite willing to accept an increase in corporate tax rates if citizens vote to keep the tax in place next month.

鈥淲e鈥檙e long term thinkers,鈥� says Milt Kruger, president of the Greater 91原创 Chamber of Commerce. 鈥淭he HST is good for business. It will keep businesses competitive, increase the tax base and allow for more hiring and growth. In the long term, it will lead to reduced taxes.鈥�

Kruger says the provincial government鈥檚 plan to reduce the HST rate by two per cent, by July 1, 2014, and give one-time payments to families with children under 18 and seniors with incomes less than $40,000 helps to balance things out, and will put more money in people鈥檚 pockets. He says that will be good for business, as consumers will spend more.

To keep the government鈥檚 deficit reduction plan on track, Finance Minister Kevin Falcon is also proposing to raise the general corporate income tax rate two points to 12 per cent, and delay a small business tax cut scheduled for next year. The small business income tax is currently at 2.5 per cent, scheduled to drop to zero in 2012.

The chamber has been advocating for the HST since 2002, and was delighted when the BC Liberal government under former premier Gordon Campbell announced that the HST would be introduced, in July, 2009.

However, Kruger said 鈥渢here are different flavours of the HST鈥� and the tax as initially proposed 鈥渄id have some problems.

鈥淚t was mishandled (by government). It was a political football that was fumbled badly. Politically, it was a disaster, and the Liberal government has paid a great toll for it.鈥�

However, Kruger says the streamlining of two sales taxes, the ability to deduct inputs and the fact that most jurisdictions around the world have a value-added tax makes it imperative that B.C. go that route. He says the effects will be gradual, but they will be positive.

The net effect as time goes on will be a much more competitive business sector, stronger exports and more job creation.

He is asking people who plan to vote in the referendum on the HST to carefully look into the pros and cons of such a tax system, and not to vote simply because of the politics around the HST.

鈥淕ather some information and make your vote about the tax,鈥� he says. Mail-in ballots about the HST will go out in June, and should be received in all B.C. homes by June 24. Voters will have to return those ballots to Elections BC by July 22.

Both the BC Liberal government and the NDP opposition, which opposes the HST, have agreed to be bound by the result of the referendum.

The actual referendum question will be this: Are you in favour of extinguishing the HST (Harmonized Sales Tax) and reinstating the PST (Provincial Sales Tax) in conjunction with the GST (Goods and Services Tax)?

Thus a yes vote will be against the HST, and in favour of a return to the GST/PST system. A no vote will indicate support for the HST.

鈥� with files from Tom Fletcher, Black Press