Close X
Tuesday, November 5, 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

    Justin Trudeau Announces Two-way Investment Deal With India Worth $1 Billion

    Justin Trudeau Announces Two-way Investment Deal With India Worth $1 Billion
    MUMBAI, India — Some of India's biggest companies say they will invest more than $250 million in Canada in the coming years in everything from pulp mills to pharmaceuticals and the IT sector.

    Justin Trudeau Announces Two-way Investment Deal With India Worth $1 Billion

    WATCH: Justin Trudeau Is For One United India, Looking Forward To Meet Punjab CM

    WATCH: Justin Trudeau Is For One United India, Looking Forward To Meet Punjab CM
    The Canadian prime minister’s schedule includes just half-a-day of official engagements in New Delhi.

    WATCH: Justin Trudeau Is For One United India, Looking Forward To Meet Punjab CM

    Vacationing Calgary Man Dies In Mexico Following Sudden Illness

    Vacationing Calgary Man Dies In Mexico Following Sudden Illness
    Troy Black was with his wife, Lindsay, in Puerto Vallarta when he began vomiting blood on Thursday. Doctors then found a tear in his esophagus, said his friend Jonathan Denis, a lawyer and Alberta's former justice minister.

    Vacationing Calgary Man Dies In Mexico Following Sudden Illness

    Liberals Looking At Creating Use-It-Or-Lose-It Leave For Fathers, Justin Trudeau Says

    Liberals Looking At Creating Use-It-Or-Lose-It Leave For Fathers, Justin Trudeau Says
    OTTAWA — Prime Minister Justin Trudeau says the federal government is looking at creating a use-it-or-lose-it funded leave for new dads.

    Liberals Looking At Creating Use-It-Or-Lose-It Leave For Fathers, Justin Trudeau Says

    Man Dead Following 'Targeted' Shooting In Coquitlam, B.C.: Police

    Man Dead Following 'Targeted' Shooting In Coquitlam, B.C.: Police
    RCMP were called to a residential neighbourhood on Friday night for several reports of shots fired and a vehicle speeding away from the scene.

    Man Dead Following 'Targeted' Shooting In Coquitlam, B.C.: Police

    B.C. Launches Formal Challenge Of Alberta Wine Boycott

    B.C. Launches Formal Challenge Of Alberta Wine Boycott
    B.C. says it has notified Alberta that it is formally requesting consultations under the Canadian free trade agreement's dispute settlement process.

    B.C. Launches Formal Challenge Of Alberta Wine Boycott