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NEWS RELEASE: Business Council of BC Welcomes Report by Commission on Tax Competitiveness
The Business Council of British Columbia welcomes the report issued today by the Commission on Tax Competitiveness that was appointed several months ago to examine the structure and impact of business taxes and to provide policy options that will support growth and job creation in BC.
At a time of sluggish global economic growth, heightened competitive pressure for small regional economies, and accelerating technological change, it makes sense to review the role of tax policy in shaping the environment for business activity. Particularly for trade-dependent jurisdictions like British Columbia, a broadly competitive tax system is essential if we are to attract the investment and stimulate the entrepreneurial wealth creation needed to sustain jobs and grow incomes.
“The Commission on Tax Competitiveness’s report outlines a number of valuable recommendations for the provincial government to consider, including some that we hope will be taken up in the February 2017 budget, and others that can be acted on over the medium-term,” said Greg D’Avignon, President and CEO, Business Council of British Columbia. “The Business Council commends the provincial government for establishing the Commission. We look forward to the province acting on the Commission's recommendations to strengthen the foundations for BC’s economic prosperity.”
“The Commission’s recommendations relating to PST exemptions and the development of a modern ‘made in BC’ Value Added Tax are very much in line with our own views,” added Ken Peacock, the Business Council’s Chief Economist. “Overall, we believe the advice provided by the Commission offers a useful roadmap for improving the business tax regime in the province in order to encourage capital investment, business growth, exports, higher productivity, and the creation of high-quality jobs.”
The Business Council also supports the Commission’s recommendation that BC maintain the corporate income tax rate at 11% (instead of lowering it to 10%), and use the resulting fiscal room to help finance the cost of the other proposals outlined in the Commission’s report.
The Business Council shared its views with the Commission on Tax Competitiveness in our submission in September.
About the Business Council of British Columbia
Celebrating its 50th year as the preeminent business organization in the province, the Council has a strong history of providing relevant public policy research and advice on issues to enhance BC’s competitiveness. Since its inception with founding Chair, JE Richardson, then CEO of BC Telephone Company, the Council has been fortunate to have as members major employers from across all sectors in BC’s economy who have played meaningful roles in building British Columbia.
Today, the Council is a source for insight on the BC and Canadian economies and how international trends and domestic policies are impacting our ability to compete in a global economy. Priority areas of focus include: environmental sustainability policies, economic reconciliation with First Nations, innovation, building a competitive tax and regulatory regime, supporting trade and market access, and the development and the attraction of a deep and diverse talent pool.