In its financial platform, the Provincial NDP has announced its intention to apply a capital tax to all BC Credit Unions with capital in excess of $20 million should they be elected. If this policy is implemented, it will have a significant impact on our organization and the people and organizations associated with us.
This tax will be applied regardless of how profitable the credit union is. While other provinces in Canada apply a capital tax on business, cooperative enterprises such as credit unions, are exempted from the tax.
As we understand this proposal, the cost to Kootenay Savings will be roughly $780,000 per year and will continue to increase annually as our capital base increases. This is a significant cost that will ultimately be borne by our members, our communities and our employees, as it will have to be paid from income that would otherwise be shared with our members, contributed to community organizations or paid in salaries and benefits.
We sincerely hope that the NDP will reconsider this proposed tax on Credit Unions should they form the next Provincial Government.
President and CEO
Kootenay Savings Credit Union