Restaurants like this one in Victoria are getting by on mostly take-out business as winter closes in, and some tourism-dependent businesses have already shut down for good. (Tom Fletcher/Black Press)

B.C. VOTES 2020

B.C. Liberals offer bridge financing, no more small business tax

Tourism, hospitality companies may close by Christmas

B.C. Liberal leader Andrew Wilkinson has added to his tax incentive program with a vow to provide bridge financing to fading small businesses and permanently eliminate their business income tax.

The extra relief is urgently needed for tourism and hospitality-related businesses who are saying they will decide by Christmas whether they can carry on in 2021, Wilkinson said at an independent clothing retailer in Delta Oct. 8. He promised a loan guarantee program to help small tourism and hospitality firms keep bank financing going as they struggle through the COVID-19 pandemic.

Timing of the loan guarantees depends on the Oct. 24 election being resolved and a new government being in place once a record number of mail-in ballots are counted, Wilkinson said.

“We have to be able to tell them, let’s plan for a vaccine,” he said. “Let’s plan for a return of international tourism. Let’s plan for the U.S. border opening again, so that those hotels in Victoria can have customers, so those tourism operators in the Georgia Strait can do whale watching again, so that people in the Interior can reopen the fishing camps.”

The small business income tax is currently set at two per cent, a reduction from 2.5 per cent that both the B.C. Liberals and NDP promised in the 2017 election. Former finance minister Carole James made good on that promise, retroactive to April 2017, and raised the large corporate income tax rate from 11 to 12 per cent to make up revenue to the province.

RELATED: NDP matched small business tax cut promise in 2017

RELATED: Cut sales tax, boost daycare, Business Council says

Wilkinson noted that Manitoba eliminated its small business income tax a decade ago. He said the current tax takes in about $220 million in a pre-pandemic B.C. economy, and while greatly diminished this year and likely in 2021, forgoing the provincial income is worth it to “turbocharge” the recovery.

The B.C. Liberal promise continues an election theme where the NDP offers direct payment to individuals and their main opponents offer assistance through the tax system. NDP leader John Horgan said this week his plan to send another round of $1,000 pandemic assistance payments to families earning under $125,000 was a direct response to Wilkinson’s offer of a year-long elimination of the provincial sales tax.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC politicsBC Votes 2020

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(Contributed - City of West Kelowna)
City of West Kelowna to consider endorsing Smith Creek project

Smith Creek neighbourhood plan proposes 900+ housing development on 154 hectares

École de l’Anse-au-sable. (Google Maps)
15 cases of COVID-19 tied to Kelowna Francophone school outbreak

Three other schools in Kelowna are also dealing with potential exposure events

There has been COVID-19 exposures at two elementary schools in District 42. (Image courtesy CDC)
Interior Health reports 24 additional COVID-19 cases

This includes three school exposures in Kelowna

City of Kelowna crews are cleaning city hall after it was vandalized overnight. (Phil McLachlan - Capital News)
Kelowna City Hall hit by anti-pandemic vandalism

Graffiti condemning the virus appears overnight on City Hall

West Kelowna Panthers. (Contributed)
West Kelowna minor hockey team raising money to broadcast games

No spectators are currently allowed at minor hockey games in BC

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. records 217 more COVID-19 cases, mask use urged

Infection spike continues, 21 senior facilities affected

Two have been taken to hospital following a vehicle crash north of Vernon on Highway 97 Tuesday, Oct. 27, 2020. (Brendan Shykora - Morning Star)
Crash north of Vernon causes Highway 97 traffic delays

Emergency crews respond to two-vehicle incident near Swan Lake; occupants taken to hospital

Seven-year-old Aaliyah Rosa was found dead in an apartment in Langley in July. (Langley Advance Times files)
Child’s body cold, no pulse: Off-duty cop testifies in Langley mother’s murder trial

The seven-year-old girl’s mother faces a first-degree murder charge

(Submitted)
Penticton apartment fire claims two lives

An apartment on Elm Avenue went up in flames Tuesday morning

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A Summerland woman has set up an online fundraiser to provide backpacks to those being released from correctional facilities.(ca.gofundme.com)
Summerland woman raising money for backpack program

Backpacks will be distributed to those being released from correctional facilities

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

People march during a climate strike in Montreal, Friday, Sept. 27, 2019. THE CANADIAN PRESS/Graham Hughes
Judge rejects 15 youths’ climate change lawsuit against Canadian government

Justice Michael Manson has granted the government’s motion to strike the plaintiffs’ claim

A four-vehicle accident on the Bruhn Bridge in Sicamous destroyed two cars and a section of bridge guardrail but remarkably injured no one. (Sicamous RCMP Image)
Sicamous’ Bruhn Bridge site of two collisions

Although a total of five vehicles were involved, no one was injured

Most Read