British Columbia's Liberal government tabled legislation Tuesday to scrap what it calls a "job-killing" provincial sales tax in favour of a levy harmonized with the federal GST.
Finance Minister Colin Hansen introduced the controversial legislation that will blend the five per cent GST with the seven per cent provincial tax, creating a single 12-per-cent tax that will apply to a much wider array of goods and services.
Hansen argued the HST is the most important step the province can make to get itself out of the recession and stimulate the economy, claiming the switch will save businesses an estimated $2 billion in costs.
"Eliminating the PST and replacing it with the HST will make B.C. more competitive, it will stimulate the economy and it will result in more jobs in every region of the province," Hansen told the legislature.
"This is a bill that modernizes and enhances the competitiveness of the provincial tax system by eliminating the old, antiquated, inefficient and job-killing PST."
The new tax would take effect July 1, with the province joining Ontario, Quebec, New Brunswick, Nova Scotia and Newfoundland and Labrador in adopting the HST.
The Liberals have promised several measures to mitigate the impact to consumers, from an HST rebate for low-income households and rebates at the cash register for items such as gasoline, books and children's clothing.
But that has done little to quiet critics of the tax, including the Opposition NDP and a grassroots group led by a former premier.
Opponents argue the tax unfairly targets consumers, making a wide range of products more expensive.
NDP Opposition Leader Carole James has vowed to fight it every step of the way, hinting her party -- which holds 35 of the legislature's 85 seats -- may try to filibuster the bill.
James blasted the government for dropping a provincial tax exemption on energy-saving appliances and subjecting those goods to the higher HST.
"Why won't he just admit that his HST betrayal is hurting consumers and hurting the environment?" James said in the legislature.
James has been calling for Liberals to vote against the HST, although the first vote connected to the legislation passed easily with the results falling along party lines.
The current standings are 49 Liberals, 35 New Democrats and one Independent.
Former premier Bill Vander Zalm is currently travelling the province drumming up support for his petition to overturn the bill. He says he needs the signatures of 10 per cent of voters in each riding in the next three months to make that happen.
Ontario voted in favour of the tax last December after the federal government offered the province $4.3 billion to buffer the blow of the HST transition.
Ottawa offered the B.C. government $1.6 billion to move to the HST, and the province has already used $750 million to offset the its deficit budget.
The federal government easily passed its own legislation last December to enable provinces to harmonize their provincial tax with the GST.
The Conservatives, Liberals and Bloc Quebecois supported the federal HST law, but the NDP voted against it.
