Close X
Friday, November 8, 2024
ADVT 
National

B.C. Businesses Say New Health Tax Will Raise Prices For Consumers

The Canadian Press, 22 Feb, 2018 01:16 PM
    VANCOUVER — Small business owners in British Columbia say a new health-care payroll tax will result in higher prices for consumers as companies struggle to absorb the cost.
     
     
    The NDP government announced in this week's budget that it would be phasing out medical services premiums by 2020 and instead will have an employer health tax of 1.95 per cent for companies with a payroll tax over $1.5 million.
     
     
    Eric Pateman, president of the Vancouver restaurant Edible Canada, says the tax will add about $30,000 to his annual payroll costs of roughly $1.5 million.
     
     
    He says with profit margins in the restaurant industry range between three to four per cent and there is little room to absorb significant labour cost increases, meaning prices will have to go up for consumers.
     
     
    Al Hasham, owner of Maximum Express Courier in Victoria, says even small tax increases of one to two per cent stifles the growth of businesses, leading to staffing cuts or higher prices.
     
     
    Finance Minister Carole James says only five per cent of businesses will be paying the full tax rate and those covering the existing health premiums for their employees will see savings as the fees are cut in half and then eliminated.

    MORE National ARTICLES

    Highway 1 fully reopens after crews clear away debris from mudslides in B.C.

    Highway 1 fully reopens after crews clear away debris from mudslides in B.C.
    The Ministry of Transportation says the road was closed after mud and debris slid onto the pavement in three different areas

    Highway 1 fully reopens after crews clear away debris from mudslides in B.C.

    Baldev Singh Kalsi pleads guilty to manslaughter in 2014 death of wife

    Baldev Singh Kalsi pleads guilty to manslaughter in 2014 death of wife
    Kalsi was arrested after his wife was found in severe medical distress at their home.

    Baldev Singh Kalsi pleads guilty to manslaughter in 2014 death of wife

    Sales soar for marijuana advent calendars as health experts issue warning

    Sales soar for marijuana advent calendars as health experts issue warning
    The company has sold 150 calendars, with 300 more orders ready for processing on top of a waiting list of about 1,500 people.

    Sales soar for marijuana advent calendars as health experts issue warning

    False killer whale is latest cetacean to die at Vancouver Aquarium

    False killer whale is latest cetacean to die at Vancouver Aquarium
    Chester was estimated to be just weeks old when he was found stranded on a beach near Tofino, B.C., in July 2014. 

    False killer whale is latest cetacean to die at Vancouver Aquarium

    B.C. city, homeless campers agree to work together to solve safety concerns

    B.C. city, homeless campers agree to work together to solve safety concerns
    Maple Ridge is the latest B.C. municipality to struggle with homeless camps.

    B.C. city, homeless campers agree to work together to solve safety concerns

    Fuel-laden barge drops anchor after it was adrift of B.C.'s central coast

    Fuel-laden barge drops anchor after it was adrift of B.C.'s central coast
    The barge is the Zidell Marine 277, also registered in the U.S., and it is loaded with 3.5 million litres of diesel and 468,000 litres of gasoline.

    Fuel-laden barge drops anchor after it was adrift of B.C.'s central coast