The embedded PST of British Columbia causes higher production costs, lower wages and fewer jobs. It is claimed that the new HST will save businesses in BC approximately $2 billion and will result in increased wages and more jobs. Support for HST in BC comes from a number of major employers operating within BC, including the Retail Council of Canada, West Fraser Timber, Chartered Accountants of BC, BC Agriculture Council, TELUS and the Canada West Foundation to name a few. The government has also released a list of HST exemptions and rebates that will be implemented with the HST.

While HST does benefit many of the industries mentioned above, the hospitality industry is expecting to experience significant revenue losses. Ian Tostenson, President of the BC Restaurant and Foodservices Association, expects the restaurant industry in BC will lose $750 million in annual revenue. When HST in BC comes into play, instead of paying just the 5% GST on restaurant meals, consumers will now have to pay 12% HST. Tostenson says the average restaurant will lose $50,000/year in revenue, which may result in some restaurants having to close their doors for good. Tostenson’s proposed solution isn’t a complete stand against the proposed HST, but instead he is supporting the concept of a phased implementation over the course of three years.

Public perception of the proposed HST is overwhelmingly negative. A poll conducted by Ipsos Reid shows that 82% of British Columbian’s oppose HST in BC. Additionally, only 10% of the public agree that HST will ultimately lead to more jobs in the province. With the negative public perception of  HST a number of HST petitions are surfacing asking people to sign and oppose the proposed BC HST.