PST to be cut on non-residential electricity

 

Finance Minister Carole James
Finance Minister Carole James

B.C. businesses will see savings in the new year, resulting from the province’s 50 per cent cut to the provincial sales tax (PST) on non-residential electricity, Finance Minister Carole James announced yesterday.

“B.C. is the only jurisdiction in North America to charge sales tax on electricity used by businesses. We are changing that and helping businesses here in British Columbia become more competitive,” James said. “Cutting the PST on electricity is one way we are helping business owners build a sustainable economy that benefits everyone.”

Following the 50 per cent reduction that starts on Jan. 1, 2018government will completely eliminate the PST on non-residential electricity on April 1, 2019. Residential use of electricity is already PST-exempt.

Eliminating the PST on electricity will translate into savings of more than $150 million annually for B.C. businesses. This will help them create more jobs for British Columbians, expand into new markets, and reinvest in new technologies.

Estimated annual PST paid for electricity use, by industrial sector is as follows:

  • Manufacturing, including pulp and paper: $46 million
  • Other services (repair and maintenance, personal care services, etc.): $27 million
  • Wholesale and retail trade: $21 million
  • Primary industry (forestry, mining, etc.): $21 million
  • Accommodation and food services: $11 million
  • Transportation and warehousing: $11 million
  • Arts, entertainment and recreation: $5 million
  • Construction: $2 million
  • Other industry sectors: $17 million
  • WAC54

    Good for them bad for the homeowner

    • Matt Prosk

      Huh? Homeowners already pay no pst on electricity use. This one will be hard for the Liberals to spin, aren’t the NDP supposed to be obsessed with raising taxes?

      • WAC54

        Hang tough, you will be one way or another.

  • chickenbus

    So the people will have to cough up another $161 million just to cover the taxes the business sector will walk away with. Why does this feel like a scalp?

    • Matt Prosk

      The NDP are actually doing something to support the business sector. Remember how they are industry killers and never do anything to stimulate the economy? If I was a Liberal I’d be scared, there are plenty of signs that the NDP are approaching the economy much differently this time around.