VANCOUVER – A group of prominent and influential business leaders has called on the NDP government to eliminate the recently announced expansion of the Provincial Sales Tax to a wide range of professional services.
The recent provincial budget added accounting, engineering, architectural, security, and commercial real estate services to a list of services they want to collect the 7% PST applied broadly and a partial 30% tax base applied to architectural, engineering, and geoscience work. Budget 2026 also confirmed a planned $80 billion increase in the debt over three years and a record $13.3‑billion deficit for 2026–27.
The signatories include 18 major organizations throughout B.C., including the B.C. Chamber of Commerce, British Columbia Real Estate Association, Business Council of B.C., B.C. Council of Forest Industries, the Canadian Federation of Independent Business, Independent Contractors and Businesses Association, Retail Council of Canada and the Urban Development Institute.
“B.C. cannot afford policies that raise input costs, discourage investment, and weaken our competitive position,” the united declaration, issued by the Greater Vancouver Board of Trade, states. “B.C.’s PST is already the most uncompetitive sales tax in Canada, and Budget 2026 doubles down. This expansion creates a massive new administrative burden and a ‘tax on a tax’ for every project.”
The dictum also notes that while the government says they want safe streets, they are also taxing security services and punishing small businesses for trying to protect their stores from theft and vandalism. Public safety concerns have driven many businesses to hire additional security to operate safely, and this ill-advised change effectively penalizes them for trying to manage a challenge they did not create.
Taxing property management and leasing services will effectively hike rent for every local retailer and making it even harder for downtown storefronts to keep their lights on.
The added taxes will also raise the cost of homebuilding, as they tax the essential services needed to build homes, including the new levy on architectural and engineering work, a direct hit to affordability and project viability.
Administrative costs will be significant, as thousands of businesses will have to register for PST and pay to manage two entirely different tax systems with different rules and filing deadlines. CFIB estimates these costs at up to $7,000 per year per employee.
PST is a “Tax on a Tax”. Unlike the GST or HST, B.C.’s PST is not refundable for businesses. This means every time a service is taxed during a project, that cost is baked in and then taxed again at the next stage, leading to higher final prices for consumers.
BC.’s PST is already the least competitive in Canada.
Because of this, businesses must pay a 7% tax just to keep their staff and property safe. This punishes shopkeepers who are already spending thousands to combat rising theft and vandalism.
“We urge the government to scrap these PST changes,” the coalition states. “British Columbia is facing an uncertain future, and we cannot tax our way to prosperity by targeting the essential services that build our homes, protect our streets, and grow our economy.”
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