Tax Interpretation Manual: Consumption Tax Rebate and Transition Act - General Rulings

CTRT - GR.1/R.1

History Of The Act

R.1 General History (Issued: 2010/10)

In anticipation of the implementation of the harmonized sales tax (HST) in British Columbia, the Consumption Tax Rebate and Transition Act was proclaimed on April 29, 2010.

The purpose of the new act was five-fold:

(1) to provide for the winding-down and elimination of the provincial sales tax (PST) under the Social Service Tax Act;

(2) to provide for the elimination of the 8 percent provincial hotel room tax under the Hotel Room Tax Act;

(3) to provide for an HST tax credit to low and modest income British Columbians to offset any incremental costs they incur from the HST;

(4) to provide a provincial credit to offset the 7 percent provincial portion of the HST on residential energy; and

(5) to provide point-of-sale rebates of the 7 percent provincial portion of the HST on motor fuels, books, children’s-sized clothing and footwear, children’s car seats and booster seats, children’s diapers and feminine hygiene products.

The Consumer Taxation Programs Branch is responsible for implementing the Consumption Tax Rebate and Transition Act, including the two new programs authorized by the Act. Those programs are:

(1) Residential Energy Credit and Rebate Program (see CTRT/SEC.9-18/R.1), and

(2) Tax on Designated Property Program (see CTRT/SEC.19-28/R.1).

For a discussion of the implementation of the harmonized sales tax (HST) in British Columbia, including PST transition rules, see SSTA/GR.1/R.2.

For a history of the Social Service Tax Act in British Columbia, see SSTA/GR.1/R.1.