B.C. pauses PST expansion on professional services, adds $90M support
Premier David Eby announced Friday the province will delay the October 1 tax increase until after the U.S. trade war ends, alongside new funding for manufacturers and forestry.
The day's top stories, food & events — every morning at 7. Unsubscribe anytime.
B.C. will delay a provincial sales tax expansion on professional services that was set to take effect October 1, Premier David Eby announced Friday at the Union of BC Municipalities conference in Vancouver.
Local governments and businesses had estimated they would pay approximately $260 million in additional tax in the first year under the expansion, which covers accounting, architectural, engineering, real estate, security and investigation services. The pause remains in effect until after the U.S. trade war ends, though no specific end date was given.
The tax expansion stays on the legislative books but will be implemented through temporary regulation only, meaning it can be reversed without a new vote.
Along with the pause, Eby announced a support package: $30 million to the BC Manufacturing Jobs Fund, $30 million to the Integrated Marketplace initiative, $15 million to BuyBC, and $15 million to the Rural Economic Diversification and Infrastructure Program. Applications from forestry sector companies and forest-reliant communities will be prioritized for expedited review.
"There's a time to stay the course and there's a time to adjust," Eby said in a written statement. "This is a time to adjust."
Finance Minister Josie Osborne added that pausing the expansion "will protect jobs and help local governments that use professional services manage their costs of delivering infrastructure and community services."
Eby dismissed speculation he would call an early provincial election, saying instead that the trade tensions represent "an existential moment for the province and the country, for many families, for many business owners across British Columbia." The Union of BC Municipalities had voted earlier this week to urge the province against calling an election that would overlap with municipal campaigns ending October 17.
What happens to the PST expansion if the U.S. trade war extends beyond 2027?
Will the $90M support package be extended or renewed if tariffs remain in place?
We'll update this story as answers emerge.
The facts
When was the PST expansion on professional services originally scheduled to take effect?
October 1, 2026. Premier David Eby announced on Friday, September 18, 2026 that the province will delay this tax increase.
How much additional tax would local governments and businesses have paid in the first year?
Approximately $260 million. Local governments and businesses had estimated this cost under the expansion covering accounting, architectural, engineering, real estate, security and investigation services.
What is the total amount of the new support package announced?
$90 million. The package includes $30 million to the BC Manufacturing Jobs Fund, $30 million to the Integrated Marketplace initiative, $15 million to BuyBC, and $15 million to the Rural Economic Diversification and Infrastructure Program.
What condition must be met before the PST expansion takes effect?
The U.S. trade war must end. Premier Eby announced the pause will remain in effect until after the trade war ends, though no specific end date was given.
