Continued leadership on climate change and clean energy is essential for the future prosperity and safety of our province and the world. This requires continued action to phase out our use of fossil fuels, replacing them with clean energy and much greater energy efficiency.
BC’s 7% Provincial Sales Tax has for many years included an exemption for fossil fuels used for transport and heating fuel. This exemption will continue when the transition to HST occurs, while exemptions for fossil-fuel reducing items such as bicycles and energy efficiency equipment will cease. As such, it is a major contradiction to the stated goals of all BC’s main political parties.
By removing the exemption, BC could receive an additional $500 million a year in income, which could be used to create two new funds: a $300 million-a-year Health Transportation Fund, and a $200 million-a-year Health Buildings Fund. These funds could be used to support programs which would enable people to reduce their travel and heating costs by far more than 7%, reducing energy costs, greenhouse gas emissions and air pollution, and creating many new jobs.
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