B.C. businesses will see savings in the new year, resulting from the province’s 50 per cent cut to the provincial sales tax (PST) on non-residential electricity, Finance Minister Carole James announced on Nov. 29.
B.C. is the only jurisdiction in North America to charge sales tax on electricity used by businesses, James says.
Following the 50 per cent reduction that starts on Jan. 1, 2018, the province will eliminate the PST on non-residential electricity on April 1, 2019. Residential use of electricity is already PST-exempt.
Estimated annual PST paid for electricity use, by sector, is as follows:
• Manufacturing, including pulp and paper: $46 million
• Other services (repair and maintenance, personal care services, etc.): $27 million
• Wholesale and retail trade: $21 million
• Primary industry (forestry, mining, etc.): $21 million
• Accommodation and food services: $11 million
• Transportation and warehousing: $11 million
• Arts, entertainment, recreation: $5 million
• Construction: $2 million
• Other industry sectors: $17 million.