HST: BC to implement HST July 1, 2010

The House of Commons on Wednesday overwhelmingly passed legislation enabling the provinces to harmonize their sales taxes with the federal GST, clearing the way for Ontario and British Columbia to implement the HST next summer.

The federal HST bill passed by a vote of 253-37. Only the NDP opposed the legislation.

Both Ontario and B.C. plan to combine their provincial sales taxes with the federal goods and services tax on July 1.

This week, Conservative MP Dona Cadman, who represents the riding of Surrey North, said she would vote against the federal HST bill. Cadman did not attend the vote on Wednesday evening.

Other Tories were expected to fall in line with the government, but some are clearly not happy about it. "I don't get a vote on the HST, and you know that," said Larry Miller, the Tory MP for the Ontario riding of Bruce-Grey-Owen Sound, after leaving a meeting of the Conservative caucus on Wednesday.

Chief government whip Gordon O'-Connor declined to comment Wednesday when asked if Cadman would be disciplined for breaking party ranks. "That's an internal matter and I'm not going to discuss that," said O'Connor, meaning that Conservative MPs would be expected to vote with the government.

Economists estimate that combining the tax will save businesses in Ontario billions, because firms will no longer have to pay tax on inputs such as materials and supplies.

But the tax has outraged some consumers, who will see a rise in the amount of tax they pay on items such as gasoline in Ontario, and phone and cable bills in B.C.

Eighty-two per cent of British Columbians and 74 per cent of Ontarians oppose the tax, according to a recent Ipsos Reid survey commissioned by Canwest News Service and Global National.

Ontario approved its own HST legislation Wednesday, /paving the way for the new tax. The province's Liberal government approved the enabling legislation by a vote of 56-29.

("Ottawa passes HST legislation" prepared by Andrew Mayeda/Vancouver Sun)