Premier John Horgan and Finance Minister Carole James take questions in the B.C. legislature. (Hansard TV)

Business groups call for payroll tax to be cancelled

NDP government under fire for ‘double dipping’ employer health tax

Business groups representing retail, restaurants, hotels, construction companies, tourism and small business are calling on the B.C. government to rethink its payroll tax to fund health care.

The organizations wrote to B.C. Premier John Horgan and Finance Minister Carole James Tuesday, asking them to withdraw the “employer health tax” imposed in the NDP budget to take effect January 2019. The tax is on payrolls greater than $500,000 and is to finance the elimination of Medical Services Plan payments in 2020.

The letter calls it “double dipping” and “disingenuous and unfair to taxpayers” for the government to begin charging the new tax while still collecting MSP for the year 2019.

The letter is signed by representatives of Restaurants Canada, the B.C. Hotel Association, B.C. Construction Employers, the Independent Contractors and Business Association, Progressive Contractors Association, Retail Council of Canada, The Urban Development Institute, the Canadian Federation of Independent Business and Tourism Industry B.C.

The business groups point out that the payroll tax comes on top of minimum wage increases totalling 42 per cent since 2011, an increase to Canada Pension Plan payroll costs beginning in 2019 and property taxes expected to rise as local governments cover the health care tax costs.

RELATED: Fraser valley grower condemns health tax

“This tax is a job killer,” said Chris Gardner, president of the ICBA. “It came completely out of left field, with absolutely no consultation before it was announced.”

James and Horgan have also been under pressure in the B.C. legislature, for the effect of the payroll tax and a still-undefined “speculation tax” on empty homes in the province.

In question period Tuesday, B.C. Liberal leader Andrew Wilkinson asked Horgan if firefighters sitting in the public gallery were going to be exempted from the tax. Horgan repeated what James has been saying in recent days, which is that discussions with municipalities, health authorities and school districts are still underway.

“After 16 years of doubling MSP premiums, we’re going to be getting rid of MSP premiums,” Horgan said.

Just Posted

Man dies in highway crash in Nanoose Bay

Man in his mid-60s was thrown from his vehicle, alcohol believed to have been a factor

Parksville-Qualicum MLA grills minister over speculation tax

Stilwell supports RDN bid for exemption from legislation

RDN to add fee for cannabis retail applications

Staff expects high volume of applicants after recreational cannabis is legalized

Parksville chamber hands out business awards

Sold-out gala draws 240 to honour 2017 finalists

RDN sees increase in building activity

Three-year rise in development permits exceeds provincial average

Ottawa proposes restricted pot labels, packages

Packaging will include red stop sign with marijuana leaf and ‘THC’

SurvivorPQB supports local charity

Readers vote for their favourites and a chance to win $250 in groceries

Open house set for Parksville supportive housing project

Island Crisis Care Society to host March 20 session at PCCC

Vancouver Island gas station owner, wielding bat, chases would-be robber

Incident happened at Super Save Gas in Nanaimo on Saturday afternoon

Ballenas girls rugby team draws over 40 players

Coach Hill happy to see a huge turnout of players this season from Grade 8 to 12

Pro-Trump protest sign with F-word is OK, court rules

Judges say Ontario man can protest publicly, even using vulgar language

Oceanside RCMP crack down on distracted driving

Campaign partners with ICBC, community safety volunteers

VIDEO: Police officer looking for distracted drivers gets hit by truck

Road safety investigator clipped by trailer while patrolling busy intersection

YVR wants you to help name three new puppies

Say hello to the Vancouver Airport’s new assistance pups

Most Read