The BCBC in August identified the EHT as the second biggest tax increase of the year under the NDP government. The council said the tax could have an impact on businesses of up to $1 billion.
Finlayson said not all people were covered under the old system – including some employees, students and retirees who paid their own premiums. He said those people accounted for about half of premiums collected.
Now, he explained, businesses with payroll costs above $500,000 a year will be taxed 1.95% on those costs.
“It means that most employers are paying more than they used to,” Finlayson said. “For those that didn’t pay in the past, they’re now picking up all the costs.”
One result, he said, could be a shift toward lower wage increases or lower profit margins.
Also published in Vancouver is Awesome.