CALGARY, Sept. 12, 2012 /CNW/ - British Columbia has been named the
least tax competitive Canadian province in the Annual Tax
Competitiveness Ranking by The School of Public Policy. Report authors
Jack Mintz and Duanjie Chen analyzed the business tax regimes of the 10
provinces and ranked them based on their Marginal Effective Tax Rate
(METR) on capital investment.
The authors argue that B.C.'s decision to renege on the HST is having a
dramatic impact on the province's ability to attract investment and
grow the economy. While de-harmonization will not take place until
2014, Mintz and Chen account for the legislated change in their report.
"For 2012, the harmonized sales tax in British Columbia is still in the
form of a VAT that has no impact on the cost of capital, and the
associated METR is 17.4 percent," they write. "For 2014, when the
reversal of HST to the retail sales tax is implemented, the METR in
British Columbia will be 27.7 percent — an increase of more than 10
As a comparison, neighbouring Alberta has a METR of 17.9 percent and New
Brunswick has the lowest METR at 4.6 percent. Canada's national average
is 19.9 percent.
The report also compares each province against all OECD countries and
finds that B.C. trails only the U.S., France, Japan and Korea in terms
of tax competitiveness.
The report can be found at www.policyschool.ucalgary.ca/publications
SOURCE: The School of Public Policy - University of Calgary
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