The CBC news program Go Public, revealed that Home Depot has been charging the PST on PST exempt items. Even after the mistake had been corrected for one customer, the store continued to charge PST on the exempt item, even though it had admitted it had wrongly charged the tax.

Complicated tax systems that try to social engineer particular outcomes result in complex administration for businesses. This, however, seems to go beyond a mere coding error.

This is why it is up to the government to reform the tax system to make it simpler, lower and flatter. Getting rid of the PST is a good start, however it might be too late for Home Depot purchasers. The PST was a bad tax, charged all through the production process, which meant consumers paid PST on the PST many times over, in some cases.

The PST was also used as a tool for the government to pick winners in a sorry attempt to engineer some favoured social outcome. The result?  Homeowners trying to save money improving their homes ended up getting ripped off in a new twist on a tax grab.

What should consumers do now?  Check their receipts and head back to Home Depot for a discount. If they no longer have their receipts, call Home Depot and ask them to check back into their records. Until Home Depot makes B.C. consumers whole, it should be boycotted.

By: Maureen Bader
Posted: May 11, 2010
Topic: British Columbia

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