B.C.’s Upcoming Tax Expansion Faces Pushback — Here’s What Could Cost You More

Photo: David Eby / Facebook, Jakub Żerdzicki / Unsplash

Prices could be going up as the B.C. government will soon be expanding the range of services that the 7% provincial sales tax (PST) applies to.

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What will be affected? Which businesses will be charged PST? Here’s what you need to know before the expansion kicks into effect.

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 are Affected?

Effective October 1, 2026, the expansion will apply 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

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The B.C. government wrote in a notice to professional service providers, “If you sell any of the above taxable services on or after October 1, 2026, you’ll be required to charge and collect PST on those services, unless a specific exemption applies.”

While it has been many months since the expansion’s initial announcement, a new all-party committee is calling for the province to scrap the plan entirely. Reportedly, this committee includes three NDP MLAs, as well as two Conservative MLAs.

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