B.C. businesses say new health tax will raise prices for consumers

Province announced that MSP will be gone by 2020

Small business owners in British Columbia say a new health-care payroll tax will result in higher prices for consumers as companies struggle to absorb the cost.

The NDP government announced in this week’s budget that it would be phasing out medical services premiums by 2020 and instead will have an employer health tax of 1.95 per cent for companies with a payroll tax over $1.5 million.

Eric Pateman, president of the Vancouver restaurant Edible Canada, says the tax will add about $30,000 to his annual payroll costs of roughly $1.5 million.

He says with profit margins in the restaurant industry range between three to four per cent and there is little room to absorb significant labour cost increases, meaning prices will have to go up for consumers.

Al Hasham, owner of Maximum Express Courier in Victoria, says even small tax increases of one to two per cent stifles the growth of businesses, leading to staffing cuts or higher prices.

Finance Minister Carole James says only five per cent of businesses will be paying the full tax rate and those covering the existing health premiums for their employees will see savings as the fees are cut in half and then eliminated.

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Upgrade work on Dunsmuir Park underway

The Dunsmuir Community Park in Electoral Area H is being upgraded. A… Continue reading

Mid-Vancouver Island air quality risk very high

Residents of the mid-Island area went to bed last night and awoke… Continue reading

Rogers ‘enhances’ wireless in Qualicum Beach

Announcement part of a multi-year national network plan

‘Beauty amongst such tragedy:’ B.C. photographer captures nature’s trifecta

David Luggi’s photo from a beach in Fraser Lake shows Shovel Lake wildfire, Big Dipper and an aurora

Blue Tie Campaign set to tee off Aug. 25

Annual event is fundraiser for the Island Prostate Centre

B.C. woman promoting ‘orange glow’ campaign to support firefighters

A Penticton woman is hoping an orange ribbon campaign will catch on throughout B.C.

Air Canada-led consortium signs deal to buy Aeroplan program

The deal would acquire the Aeroplan loyalty program from Aimia Inc

Microsoft uncovers more Russian attacks ahead of midterms

Evidence found of Russian hacking attempts targeting U.S. political groups

Animal crackers break free from their cages

PETA pressures Mondelez International to show animals roaming in their natural habitats

U.S. man admits slaying wife, blames her for daughters’ deaths

A 33-year-old Denver man is facing three first-degree murder charges

Muslims celebrate Eid al-Adha as pilgrims conduct hajj rites

More than 2 million pilgrims carry out the final rites of the hajj in Saudi Arabia

White Spot records B.C. Pirate Pak record day

Popular B.C.-Alberta event raises more than $116,000 to send kids and adults to Zajac Ranch

Suspect in Spiderman suit steals camera on Vancouver Island

Suspect in red and blue “onesie” caught on surveillance footage breaking into truck in Nanaimo

Most Read