B.C. premier slams the brakes on expanding PST to professional services

Premier David Eby drew cheers at the Union of B.C. Municipalities Conference in Vancouver on Friday when he announced his government is suspending the expansion of the provincial sales tax to professional services that was scheduled to take place Oct. 1.

Putting off the PST expansion will mean the province won’t receive the $260 million in revenue it expected in 2026-27 through the tax on professional services. That comes at a time when Eby’s government is already projecting a $13.8 billion deficit this fiscal year.

The premier also said that his government will spend $75 million to expand three business support programs, including the manufacturing jobs program, which helps manufacturers build their operations and create more employment.

A welcome email is on its way. If you don't see it, please check your junk folder.

“We’re hearing from businesses that are facing bans on their products to one of their major customers in the United States that are facing incredibly elevated tariffs right now, and they have asked us to do what we can to support them, to give them the breathing room that they need to find other customers and diversify to other markets,” said Eby.

The move to halt the PST expansion was welcomed by the Greater Vancouver Board of Trade, which said the pause will help improve affordability for employers, entrepreneurs and households.

Bridgitte Anderson, CEO of the Board of Trade, said she will keep working to ensure the pause becomes permanent.

“Through our Stop the Squeeze campaign, Board of Trade members and local businesses sent more than 4,000 letters to MLAs, demonstrating the depth of concern across the province and the importance of keeping costs manageable for households, entrepreneurs, and employers,” she said in a statement.

“This outcome demonstrates the value of constructive engagement between government and the business community.”

In what is expected to be the start of preparing British Columbians for a provincial election, Eby talked up the recent investment conference he attended in Ottawa with Prime Minister Mark Carney and Eby’s fellow premiers.

He also talked extensively about the threat posed to B.C. economy by U.S. tariffs and what his NDP government is doing to build major LNG projects, mines and clean electricity expansions to help weather those impacts.

“I’m announcing that we’re expanding the number of these priority projects from 35 to 41. Together, these projects will deliver an estimated 130 billion dollars in economic activity to the province of BC. That’s 56,000 additional good family supporting jobs in British Columbia,” said Eby.

“Our latest trade statistics show that exports to the United States were down four per cent. This is not good news. This is bad news for businesses. This is challenges for families, but let me tell you that the same trade statistics show that trade from British Columbia to jurisdictions other than the United States is up 16 per cent, and this is absolutely the direction that we need to go.”