Here's What You Need To Know About B.C.'s Tax Expansion Plans

B.C. has officially paused its plans to expand the range of services that the 7% provincial sales tax (PST) applies to.

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“There’s a time to stay the course and there’s a time to adjust. This is a time to adjust,” said B.C. Premier David Eby. “Delaying these changes until well after Trump’s disastrous trade war is over will give businesses some breathing room as they navigate tariffs and bans while pivoting to other markets.”

PST Expansion in B.C.

The PST expansion plan was announced back in early 2026, although many small B.C. businesses hadn’t been excited about it. According to the Canadian Federation of Independent Business (CFIB), 80% of businesses opposed the PST expansion.

Some key findings of the CFIB included 72% of surveyed businesses saying that they were likely to pass some or all new PST onto customers. Moreover, 93% of respondents said Budget 2026 wouldn’t improve conditions for their business.

b.c. pst expansion — Photo: Government of B.C.

“The B.C. government is asking local entrepreneurs to pay more, get less and somehow grow the economy anyway. Instead, Premier Eby must stop this tax and instead reign in spending,” said Ryan Mitton, CFIB’s Director of Legislative Affairs for B.C.

What Services Would Have Been Affected?

The expansion was originally going to kick into effect on October 1, 2026. It would have applied to the following:

Accounting services, including bookkeeping and assurance services
Architectural services
Engineering and geoscience services
Security services, including private investigation services
Non-residential real estate services, including trading services, rental property management services and strata management services

Now, the Province is pausing these plans “in response to new and ongoing international trade disruptions and the economic uncertainty.” This will reportedly save approximately $260 million for people, local governments, and businesses in 2026-2027.

“The Province will continue to take action to ensure the right conditions are in place for businesses to succeed and for people to access the services they rely on,” wrote a press release.