HST to benefit B.C. film industry
While the negative impacts of the HST have garnered much attention, Ken Ghag, executive director for commodity tax at Ernst & Young, told the Straight that the film and television industries will benefit from the taxation change.
Ghag, who has conducted three HST seminars for the film industry, explained by phone that film-production companies—as well as suppliers of catering and lighting—that are currently paying seven-percent PST on rental equipment, props, costumes, and other goods will be able to recover the 12-percent HST after July 1. “That means that yes, they will be paying a higher rate of tax at 12 percent, but the full 12 percent will be fully recoverable by them on their GST returns, which means that effectively they’re not paying that tax,” he said.
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