In response to today’s call by the BC Green Party to increase the exemption threshold from $500,000 to $1,500,000 for businesses paying the Employer Health Tax, Fiona Famulak, President and CEO of the BC Chamber of Commerce, released the following statement:
“The BC Chamber of Commerce supports the BC Green Party’s call to increase the exemption threshold for the Employer Health Tax (EHT) to $1.5 million. In 2021, our members approved a policy resolution seeking this change [find it here] and we have advocated many times for the provincial government to act.
The EHT is a tax on hiring and job creation that hits small businesses, the backbone of the provincial economy, once their total payroll surpasses $500,000. With wage inflation and other cost increases since the EHT was first introduced, the need to raise the threshold is even more urgent than it was two years ago.
Only five provinces have a similar tax to the EHT and four offer exemption thresholds. British Columbia’s threshold is the lowest of those four by a significant amount: Manitoba’s is $1.5 million, Newfoundland’s is $1.3 million and Ontario’s is $1 million.
The BC Chamber or Commerce will continue to be a vocal advocate for reducing the costs of doing business in British Columbia.”