BC Prosperity

Reforming British Columbia’s Carbon Tax Plan is the latest installment in the Institute’s series spotlighting potential policy reforms for British Columbia. It shows that BC’s current carbon tax has serious design flaws that unnecessarily harm the economy, and highlights ways the province could mitigate those negative economic impacts, while still achieving its goal.

The Case for Replacing British Columbia’s Inefficient Provincial Sales Tax with a Made-in-BC VAT is a new study that finds replacing the current B.C. Provincial Sales Tax with a Harmonized Sales Tax (or a Value Added Tax) would reduce taxes on business inputs, particularly machinery and equipment, which discourages investment, lowers productivity, and slows economic growth. Removing this tax on machinery and equipment could increase annual incomes in B.C. by an estimated $700 to $1,700 per worker.