Retail BC today alerted its member retailers to the upcoming federal sales tax cut and the need to program cash registers and other point-of-sale equipment for a 6% GST rate, effective July 1st, 2006.

In its letter, Retail BC applauded Ottawa’s sales tax cut and called on the Campbell government to match the move with a one point PST cut this year.

"Retailers and consumers are wondering why Ottawa can afford a GST cut, but the BC government, with its robust fiscal surpluses, says no to sales tax relief," said Mark Startup, president and CEO of Retail BC. "The BC government can afford to cut the PST and should act on it without delay."

"A provincial sales tax cut now is both sensible and sustainable," said Startup. "A one point PST cut would impact provincial revenues by $540 million over a full fiscal year – an affordable amount considering the fiscal surplus is forecast at $1.45 billion in 2006/07. Moreover, sales tax revenues are expected to increase by $600 million over the next three years."

"BC families and border communities deserve a break," said Startup. "A combined federal and provincial sales tax cut would ease the financial burden on high-mortgaged BC families and curb the flow of cross-border shoppers to Alberta."

The average BC family (with an income of $70,000) stands to save over $750 in sales taxes per year if BC joined Ottawa’s sales tax cut plan.

Retail BC is the voice of over 3,000 retail companies within British Columbia. BC’s retail industry generates over $50 billion in sales and employs over 250,000 British Columbians.