The following letter was sent to Premier Gordon Campbell and copied to Coast Reporter.
On behalf of the board of directors of the Sunshine Coast Community Services Society, I am writing to express our concern over the harm the harmonized sales tax (HST) could have on B.C.'s non-profit community social service agencies.
A seven per cent increase in goods and services taxes will hurt our sector by increasing operational costs, particularly for residential services such as homes for persons with disabilities and shelters for women and children escaping violence. Already lean organizations cannot accommodate an increase in overhead costs without decreasing direct service, and this would be at a time when vulnerable citizens need our services more than ever. For example, in the last year, our food bank usage rose by over 30 per cent, and we are worried that low income families will feel the pinch of paying even more of their limited income to taxes.
The current 57 per cent rebate level proposed for charities and eligible non-profits means costs will rise for our valuable community organizations. We therefore urge you to enact a revised rebate rate that will ensure a fiscally neutral impact. We ask that at a minimum, the rebate level for our sector be set at 75 per cent, the same as for B.C. municipal governments.
The community social services sector considers itself a strong partner with the provincial government, and it plays a pivotal role in building a healthy and economically thriving province. It contributes 6.9 per cent to the provincial GDP, and delivers countless vital services at a reasonable cost. We welcome the chance to work with you on this matter.
Gloria Lifton, president, board of directors, SCCSS
