Retail Council of Canada applauds the B.C. government's decision to reduce taxes on small businesses and individuals, providing welcome relief for retailers. With consumer confidence growing, these measures will add fuel to B.C.'s economy.

"Governments across Canada, and around the world, are facing lower revenues and tough decisions and B.C. is no different. The fact that the Province has left room to provide some relief for taxpayers and small businesses is welcome news for B.C.'s retailers," said Max Logan, B.C. Director for the Retail Council of Canada.

The Province announced in its September Budget that the basic personal income tax exemption would be increased to $11,000 as of January, 2010, meaning that no provincial income tax would be payable on income below that level. In addition, the Small Business Tax Threshold will be increased from $400,000 to $500,000 and the small business tax rate will be reduced to zero by 2012.

"Small businesses in our communities are fundamental to the success of the entire B.C. economy," said Logan. "We feel these tax reductions will give those businesses a boost at just the right time."

Logan also reiterated Retail Council's support for the move to a harmonized sales tax, noting that he was pleased to see a new exemption for HST on home heating and electricity bills.

"HST is going to mean fewer administrative headaches for retailers, resulting in time savings and cost savings," said Logan. "In addition, economists tell us that the B.C. economy will grow more quickly as a result of a switch to HST. Retailers do well when our economy is growing and employment is strong, and that's exactly what we expect from a switch to HST."