Of course the majority of the taxpayers were quite happy in the last budget to hear that there was not going to be any more new taxes. There was mention that there were going to be a great many user fees scrutinized. All indications are that there was going to be rises in many of these, but it seems it didn’t have that much of an impact on the thoughts of many people.
As those user fees become more realistic as individuals utilize them, then that’s when the reality of the increases really hits home. What individuals don’t realize is that the province enjoys about $2 billion a year brought in by user fees that are about 400 in total. In the government’s eyes a user fee is not a tax, and that they are two distinct entities. The government states that a user fee covers the cost or at least part of the cost of a particular service. Whereas a tax produces money for the general government things or needs.
In regards to the user fees all of 400 of these are being looked at. Apparently the government has set the goal that they want the full cost recovery, but the details won’t be revealed concerning this until the next budget. The average family is exposed to a certain amount of these user fees, however this will vary. One of the most common is driver licenses and license plate renewals.
Many of the user fees are connected to entertainment venues such as fishing and hunting, or camping. Included in this that many people haven’t given much thought of is a surcharge for the 911 services that would appear on phone bills.
Whenever looking at any announcement or budget or anything to do with finances which is usually what we hear from the government on, it is most important is to look at the material being put forward in its entirety. This is most important at budget time when the budgets are brought forward to the taxpayer. However, in most cases the government will focus on all of the good aspects of their announcement and downplay any negativity.
When it comes to the government unfortunately as taxpayers we must except whatever is handed to us. We have no opportunity to do comparison-shopping or to take our business elsewhere. When it comes to users fees we are going to have to rely on the government that is in office at the time to make the decisions based on this. As taxpayers we should stay on top of them and know which ones are going to affect us and be ready to accept any increases that may occur.
