VANCOUVER – British Columbia’s Minister of Transportation has confirmed that a proposed Metro Vancouver transit tax would simply be added to the provincial sales tax on receipts.
Todd Stone sent a letter to the Mayor’s Council on Transportation this weekend saying the new tax would be harmonized with the PST.
This means retailers would not have to change their systems to accommodate a new line item on receipts, which would have caused headaches for local businesses.
READ MORE: Will a Metro Vancouver transit tax cause a retail exodus to Abbotsford?
A referendum is set to begin next month on the proposed 0.5 per cent congestion improvement tax, which would apply to everything the PST does and is meant to fund new transit options and better roads.
If the tax is approved, Metro Vancouver shoppers will see a combined PST and transit tax totalling 7.5 per cent on their receipts.
The mayors’ council, chaired by Vancouver Mayor Gregor Robertson, says it welcomes Stone’s letter and it will not be requesting any further exemptions to the tax.
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