The BC government chose not to reduce the carbon tax and/or other taxes on motor fuels such as transportation infrastructure and transit taxes and then add the HST. This decision meant that businesses which purchase motor fuel to operate their businesses were unable to deduct any of the provincial taxes they pay on motor fuels from the HST they collect on their sales. This outcome is particularly harsh on businesses that had not been required to collect the PST but must use motor fuels to operate their businesses, such as sightseeing and adventure tour businesses.
