We consistently hear that the Provincial Sales Tax is a flawed tax system; something you may feel strongly about.
In fact, survey findings from 2017 indicate that eliminating PST from business inputs was ranked the best way the BC government could best support local business like yours. This survey was conducted right before the 2017 provincial elections.
Fortunately, the provincial government has listened to your needs. Now, PST paid on electricity is being phased-out for businesses. On January 1, 2018, PST on hydro was reduced by 50%, and will be fully eliminated by 2019.
While this is a big step in the right direction, there is still work to be done. Not only is the tax an administrative nightmare, the PST directly hurts businesses like yours, it limits your opprotunity for growth in an ever-competitive market. To fix the PST, CFIB has some recommendations:
- Remove the PST on machinery on equipment
- Simplify the administration of the PST
- Consult the public on value-added tax allowing the government to maintain current PST exemptions
Moving forward, the parties should work together to adopt these strategies. We at CFIB will continue to apply pressure to fix the PST.