B.C. to give some HST rebates

The B.C. government is offering schools and hospitals a break on the harmonized sales tax, which takes effect July 1.

The government will provide partial rebates on the seven-per-cent provincial sales tax (PST) portion of the harmonized sales tax (HST) to ensure the institutions won't be paying more in taxes after the blended tax comes in, according to B.C. Finance Minister Colin Hansen.

"This allows them to get rebated the difference between what they currently would be paying in PST and what they would be paying under an HST system," Hansen said in Victoria on Thursday.

The rebates will apply to qualified schools, universities, public colleges and hospital authorities, which were facing higher costs because the HST will apply to a broader range of goods and services than the PST.

Schools will receive a rebate of 87 per cent of the provincial portion of the HST, universities and public colleges will get 75 per cent, and 58 per cent will be rebated to hospitals and health authorities, Hansen said.

The rebate scheme will be administered by Revenue Canada along with the GST rebate.

B.C.'s Liberal government announced it would harmonize the GST with the provincial sales tax soon after the provincial election in May 2009, triggering widespread opposition.