Manufacturing AUTOMATION

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The upside of the HST


May 11, 2010
By Mary Del


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While households across Ontario and British Columbia are dreading the upcoming HST, many manufacturers and other small businesses are welcoming the new tax with open arms.

In a recent letter to the editor on www.bclocalnews.com, one B.C. manufacturer listed the three major benefits he associates with the HST:

First, eliminating the layer of bureaucracy associated with the PST will reduce the cost and complexity of gathering taxes. This will positively affect retailers more than it will affect manufacturing businesses in Langley.

Second, the cost reduction from not having to pay the PST will help us improve productivity. We will be able to invest in more automation, and that will help us create jobs. Alco has already been able to move some manufacturing back to Langley from China, and we think the HST will help us accelerate that process.

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Third, the shift to HST will improve our international competitiveness, which will help us grow. We currently export to Mexico and the U.S., and we look forward to exporting to many more countries. The change to HST will help.

All these changes improve the stability of the jobs we create in Langley; jobs that pay the taxes for our roads, schools and health care.

The HST takes effect in both B.C. and Ontario on July 1. Anything purchased after May 1 for use after July 1 is also subject to the tax.