Government & Community Relations

BC & Yukon Division 1501-4330 Kingsway Burnaby, British Columbia V5H 4G7 Telephone: (604) 689-3144 Fax: (604) 689-0377 Toll Free: 1 800 268-7582 Yukon Toll Free: 1-866-991-0577 info.bc@mssociety.ca www.mssociety.ca

Submission to the Select Standing Committee on Finance and Government Services Regarding the Impact of HST

People living with multiple sclerosis (MS) have always faced challenges achieving income security, accessing affordable and equitable health services, and having appropriate housing and home support options to choose from. The harmonized sales tax (HST) did not create any of these challenges; however, it will surely exacerbate them all without the BC Government’s direct intervention to make the effect of HST as fiscally neutral as possible for people living with chronic illness and/or disability.
The MS Society of Canada offers the Select Standing Committee on Finance and Government Services a summary of our concerns regarding the impact of HST on our client population, as well as a number of specific actions that the MS Society would like to see the BC Government implement in order to mitigate the negative impact that the HST will have.

Income Support

Income support is a critical issue for people living with a disabling, chronic illness. The lack of a secure, adequate income precludes individuals from participating and contributing fully as citizens and this in turn has profound social and health cost implications. Given the treatment options currently available to control disease progression, nearly 80 percent of people with MS are eventually unable to work full-time.
The MS Society of Canada appreciates the BC Government’s desire to mitigate the negative effects of HST on lower income families and we support its initiative to offer tax credits as one way to achieve this. Specifically, the MS Society urges the BC Government to:

1) Harmonize the benefit of BC’s portion of the HST tax credit with the federal portion by increasing the eligible income levels for the tax credit to the $32,312 maximum currently offered for the GST credit.

2) Work with the federal government to guarantee that the total amount of the HST credit is a fully refundable tax credit.

Affordable health products and service

People living with chronic illness and disability not only rely upon BC’s formal medical system to help prevent disease progression and symptom management, they also purchase and consume a substantially higher proportion of health-promoting products and services than does the general public in order to maintain their health.
The MS Society of Canada is concerned that the HST will not only lessen the consumer purchasing power of people living with chronic illness and disability, it will also reduce the product and service options available to them. Specifically, the MS Society urges the BC Government to:

1) Ensure that all services that regulated health professionals can bill patients for directly are HST exempt.

2) Include incontinence and other medically-necessary supplies in the list of HST exempt or zero-rated products.

3) Eliminate the provincial portion of the HST for registered massage therapy, given that registered massage therapy is a regulated therapy in BC. (Registered massage therapy is not currently GST-exempt because it is not regulated in at least five provinces; however, British Columbians should not be penalized for the inaction of other provinces.)

4) Include basic health promoting products, such as vitamins and nutritional supplements, in the list of HST exempt or zero-rated products.

5) Eliminate the provincial portion of the HST charged to install, set up, maintain and/or repair medical devices. (The purchase of medical devices is already proposed to be HST exempt.)

6) Work with members of the BC Medical Association to reduce the impact of HST on setting up and operating private and (especially) rural family and specialist practices.

Access to home care and age-appropriate long-term care

Fortunately, the vast majority of people with MS are currently able to remain safely and independently at home throughout their lives. Most remain at home with just minimal assistance and adaptation to meet their changing needs. Others, whose disease is more severe, may need help through home care or assisted living options. Still others, who are more severely disabled, will need the services and support of long-term residential care facilities.

Although long-term residential accommodation and condominium fees, and most personal-care services for underprivileged individuals or individuals with disabilities will be HST exempt, the impact of HST on the housing sector has only been assessed by the Government on an aggregated basis. The particulars of how municipal, non-profit and for-profit providers of housing options for people living with chronic illness and/or disability is not yet fully understood.1

The MS Society of Canada is concerned that a 7%-12% increase in construction, operational, maintenance and renovation costs for housing providers will pressure these providers to limit the development of new housing units, to decrease the level of service and support to existing housing units or to pass the additional costs on to residents. Specifically, the MS Society urges the BC Government to:

1) Eliminate the provincial portion of the HST on construction or renovation costs associated with modifications to make properties (including home properties) more accessible to persons with disabilities.

2) Eliminate the provincial portion of HST on the construction, maintenance and repair of housing units and facilities serving the needs of people living with chronic illness and/or disability.

3) Harmonize the percentage of the HST paid that registered charities, qualifying non-profit organizations, and designated municipalities can claim back. Under the proposed HST guidelines, different rates will not only apply to each category, but will also differ between the federal and provincial portion of the HST.

4) Ensure that the exemption for registered charities, qualifying non-profit organizations, and designated municipalities operates on a point-of-sale basis in order to avoid straining the cash flows of these organizations.

About Multiple Sclerosis

Multiple sclerosis is an unpredictable, often disabling disease of the central nervous system which is composed of the brain and spinal cord. The disease attacks the myelin which is a protective covering wrapped around the nerves of the central nervous system.

Multiple sclerosis is a complex disease. While it is most often diagnosed in young adults, aged 15 to 40, we know that it affects children, some as young as two years old. The impact is felt by family, friends and by the community. MS is unpredictable, affecting vision, hearing, memory, balance and mobility. Its effects are physical, emotional, financial, and lasts a lifetime. There is no cure.

About the MS Society of Canada

Until we end multiple sclerosis (MS), people affected by the disease face many challenges. The MS Society of Canada is committed to ensuring that people with MS and their families have opportunities to participate fully in all aspects of life.

The BC & Yukon Division of the MS Society of Canada has been supporting research into multiple sclerosis and providing services and programs to the estimated 8,000 – 10,000 British Columbians affected by MS and their families since 1975.

For more information about the MS Society’s concerns about the impact that HST will have on people living with MS and its recommendations to mitigate the negative affects of the HST, please contact:

Dave Doig
Director, Programs
MS Society of Canada (BC & Yukon Division)
1501-4330 Kingsway Burnaby, BC
V5H 4G7 604 602-3214
dave.doig@mssociety.ca

1 BC Non‐Profit Housing Association. The Impact of HST on BC’s Non‐Profit Housing Sector. October 2009.

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