Office of the Premier
B.C. pauses PST expansion to professional services amid ongoing trade uncertainty
Office of the Premier
B.C. pauses PST expansion to professional services amid ongoing trade uncertainty
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Office of the Premier
B.C. pauses PST expansion to professional services amid ongoing trade uncertainty
Pause protects jobs, helps employers and local governments
Summary
- The Province is pausing the planned Oct. 1, 2026, expansion of PST on professional services
- Delaying the change until the trade war is over offers some breathing room for businesses facing a period of economic pressure
- The change will help local governments manage expenses
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Businesses throughout British Columbia will be better able to manage costs as the Province pauses the planned expansion of the Provincial Sales Tax (PST) to professional services.
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.”
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.
Support for businesses
British Columbia is one of the lowest taxed provinces in the country.
Pausing the PST expansion is one of several actions the Province has taken through the taxation system to help businesses reduce costs, attract investment and grow the economy. Other examples include:
- lowering the B.C. small business tax rate from 2.5% to 2%, in 2017
- increasing the small venture capital tax credit budget and annual limit to encourage investment in eligible small businesses
- introducing the B.C. scientific research and experimental development tax credit
- introducing the new B.C. manufacturing and processing investment tax credit
- lowering the marginal effective tax rate for new business investment through B.C.’s participation with the federal government’s new Productivity Mega Deduction
- increasing the employer health tax exemption threshold from $500,000 to $1 million
- eliminating the consumer carbon tax, saving small business owners money
Quick Facts:
- The PST expansion on professional services will be paused through a temporary regulation.
- As a result, the PST exemption will be maintained on professional services businesses, including accounting and bookkeeping, architectural, geoscientist and engineering services, non-residential real estate commissions and services, and security and private investigation services.
Media Contacts
Office of the Premier
Media RelationsPremier.Media@gov.bc.ca
Ministry of Finance
Media Relations236-989-2227
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