Why is PST on legal services a good thing? Letter to the editor, Vancouver Sun

To the editor:

Now that the PST is to be restored, perhaps someone who voted for that result, or the government, will explain why it is a good thing that, almost alone out of major service providers, clients of lawyers will again face PST of 7 percent on legal fees.

People will remember that, back in the 1990s, the NDP changed sales tax policy, to extend PST to legal services. But the Liberals have not reversed that decision.

With PST, business clients either pass the extra cost on to their customers, or lose business because of higher prices, or absorb the tax but have less money internally with which to increase wages for employees or invest in their business.

Clients who are consumers will face a slightly small tax burden, because PST does not apply to disbursements such as photocopying or couriers, only a minor part of most legal bills. But it is unlikely those savings will be enough to pay the higher costs they will face from business because the PST is to be restored.

Yours,

Donald L. Moir
INC Business Lawyers