Premier Christy Clark's government promised Wednesday to lower the HST to 10 per cent and provide one-time "transition" cheques in a bid to swing the vote in next month's mail-in referendum.

The HST will initially drop by one per cent to 11 per cent in July next year — but only if the June referendum confirms the tax.

Finance Minister Kevin Falcon told reporters in a telephone conference the changes are a result of town hall-style meetings by telephone with 275,000 British Columbians who stayed on the line, "the largest listening exercise we've ever done in B.C.

"We wanted to listen to what British Columbians had to say about ways to improve the HST and that's exactly what we've done."

The tax will be "marched down in a prudent manner," to 11 per cent in July next year and to 10 per cent two years later. All families with children will receive a one-time $175 "transition payment" per child, while low-income seniors will receive the same.

Falcon said the cuts and transition payment together will exceed the $350 a year that an independent panel found the HST would cost the typical B.C. family.

But opponents said the B.C. Liberals are trying to bribe voters to approve the HST in next month's mail-in referendum.

"The premier said not two months ago any effort to imply there would be a rate cut would be buying votes," said Opposition leader Adrian Dix.

The New Democrat leader also said the Liberals can't be trusted on the tax after they pledged before the 2009 election they were not considering a harmonized sales tax.

"They misled people in 2009 and again in 2010. They're misleading people today."

Chad Moats, who led the local effort to force a referendum through a signature petition and then an unsuccessful recall effort against Kamloops-North Thompson MLA Terry Lake, called the proposed cut a desperate move.

"It shows the fiscal situation of the province and what it would have been after the election if they hadn't brought the HST in," Moats said. "It's a problem of their own making."

To pay for the proposed cuts, the province will not bring in small business and corporate tax cuts that were previously announced.

Peter Aylen, president of the Kamloops Chamber of Commerce, called the proposals "a trade-off that's worthwhile.

"It's another way of skinning the cat and makes it a little more palatable."

Aylen acknowledged the loss of small business and corporate tax cuts will reduce some cost-saving to business. But the simplicity of the HST system makes it worthwhile.

"I don't know if they'll (small business) be further ahead. I know that going back to the alternative and paying $1.6 billion is not feasible."

The Ministry of Finance provided documentation showing the provincial deficit will climb to $2.5 billion next year if the referendum goes against the HST, largely due to the $1.6-billion penalty owed the federal government under terms of the deal.

Lake, who floated the idea of a 10-per-cent HST earlier this year but was deemed off-message by then premier Gordon Campbell, called the measures announced Wednesday "a balancing act" that includes sacrifice from businesses that benefit from the tax.

"There's a trade-off in terms of a slightly higher corporate tax. It's something they're willing to live with."

Canadian Taxpayers Federation applauded the move, calling the PST "a job-killing relic that belongs in the history books."

The Thompson-Nicola Film Commission is also supporting continuation of the HST, saying a return to the PST and GST, at a combined 12 per cent, will hurt activity in the region.

cfortems@kamloopsnews.ca