Victoria – In response to new and ongoing international trade disruptions and the economic uncertainty they are creating, government intends to delay the PST expansion to professional services that had been scheduled to take effect on Oct. 1, 2026.
“There’s a time to stay the course and there’s a time to adjust. This is a time to adjust,” said 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.”
Savings for people, local governments and businesses is estimated at approximately $260 million in 2026-27.
“Businesses and communities need more flexibility at this time to be able to invest, adapt and grow,” said Josie Osborne, Minister of Finance. “Pausing the PST expansion will protect jobs and help local governments that use professional services manage their costs of delivering infrastructure and community services.”
Trevor McDonald, the Executive Director of the Chilliwack Business Improvement Association posted to social media: With a provincial election looming…No surprises this would be taken off the table! Thank you to my fellow BIA members for your steady advocacy with regard to stopping PST expansions.
The Business Improvement Areas of British Columbia (BIABC) is welcoming the provincial government’s decision to halt its planned expansion of the Provincial Sales Tax (PST), saying that regardless of the political considerations surrounding the decision, it is the right move for businesses, workers and communities across British Columbia.
Since the PST expansion was announced, BIABC has joined a growing chorus of business organizations and leaders warning that imposing the tax on services businesses rely upon every day would add costs at precisely the wrong time.
“There will obviously be speculation about the timing of this decision and whether the prospect of an election played a role,” said Jeremy Heighton, President of BIABC. “Regardless of the motivation, when government listens to legitimate concerns, recognizes that a policy is creating unintended consequences and changes direction, that should be acknowledged. This is the right decision.”
BIABC had been particularly outspoken about the proposed application of PST to security services, describing it as a “tax on safety.”
Businesses in downtowns, main streets and commercial districts across British Columbia are already spending significant amounts on private security, patrols, monitoring, vandalism prevention and other measures intended to protect employees, customers and property.
“We have consistently said that taxing security services was particularly difficult to justify,” Heighton said. “At a time when businesses are already spending more of their own money to protect employees, customers and storefronts, government was effectively proposing to tax them for trying to keep people safe. We called it a tax on safety because that is exactly how it would have been experienced by businesses.”
BIABC’s concerns were shared by a broad cross-section of British Columbia’s business community, which repeatedly warned that expanding the PST would increase costs, discourage investment and add another financial burden at a time when many businesses are already dealing with higher operating costs and significant economic uncertainty.
Heighton said the decision is particularly welcome for small businesses, which have limited ability to absorb additional costs and are often forced to choose between passing those costs along to customers or reducing spending elsewhere.
BIABC said the decision should now open the door to a broader conversation about the cumulative cost pressures facing businesses and what can be done to strengthen the competitiveness of British Columbia’s economy.
“If an election is coming, these are exactly the kinds of issues we expect parties and candidates to be talking about,” Heighton said. “How do we make it easier to operate a business, create jobs and invest in our communities? How do we improve public safety rather than make it more expensive for businesses to provide it themselves? Those conversations should continue regardless of when British Columbians next go to the polls.”
