Although small and medium sized business will pay tax on more items, they will be able to recover that tax.  Right now companies pay PST on many items needed to run their businesses, and that is passed on to customers in the form of higher prices.

Also, because the GST and PST regimes are not currently aligned, the rules differ.  Compliance is more complex – and thus more expensive to administer.  There will also be efficiencies in the government side of administration.

It’s true that consumers will pay more on items not covered by exemptions, but the HST overall will make  BC more competitive long term.  That will help increase investment and create jobs – better for more British Columbians long term.