The Martlet

There’s been plenty of buzz around July 1, 2010 — when Harmonized Sales Tax (HST) will kick in on many goods and services. But exactly how is it going to affect students?

HST will combine the five per cent federal Goods and Services Tax (GST) with the province’s seven per cent Provincial Sales Tax (PST). HST opponents note the new tax will apply to all the same goods and services GST applies to — which also means the seven per cent PST will be tacked onto anything GST-applicable, even items that were PST-exempt.

UVSS Director of Finance Edward Pullman says HST will affect a range of university services used by students, although he noted tuition would likely only see the usual two per cent hike next year.

“But an increase in fees for auxiliary services is to be expected,” he said.

Auxiliary services include counselling services, food and catering services, as well as the bookstore and printing services.

The news is especially grim for the restaurant and tourism industry, and other small businesses that are already struggling to survive the economic downturn, Pullman says.

“The hospitality and construction industries are the highest employers of students,” he said. “We should expect to see [fewer] jobs to be had for students and a rising difficulty to gain part-time employment.”

B.C.’s Liberal government has been criticized for saying, during the campaign for the May provincial election, that it had no plans to implement an HST.

The ongoing debate over the provincial government’s proposed harmonization of sales tax hit the streets on Sept. 19, when an anti-HST rally waged on the back lawns of the Legislature.

Speeches were shared on how British Columbians felt (and still do feel) outraged and mislead.

“The implementation of HST will not help the B.C. economy,” said Dennis Pilon, a professor in UVic’s Department of Political Science. “It is only a shifting of the tax burden from the wealthy to the less wealthy.”

Pilon noted HST-type tax increases are regressive, meaning they take a higher toll on low income consumers than they do on high-income ones. Sales taxes, especially on food, clothing, medicine and other basic necessities, are widely cited as examples of regressive taxes.

Pilon also said that these types of taxes are easy to impose on students because, in the grande scheme of things, they don’t have much of a voice.

“What about the people who can’t afford this tax?” he asked. “The implementation of a harmonized sales tax takes advantage of those who cannot pay.”