British Columbia Reinstates Provincial Sales Tax System

The Province of British Columbia will reinstate the combined 12% PST (Provincial Sales Tax) and GST (Goods and Services Tax) tax system following the referendum decision to eliminate the HST (Harmonized Sales Tax). The HST had replaced the PST on July 1, 2010. The PST will be reinstated at 7% with all permanent PST exemptions. The Province may make some common sense administrative improvements to streamline the PST. The BC government has established an action plan to guide the transition process, with an anticipated target date of March 31, 2013. In the interim, the HST will continue to apply at the full 12%. Eligible lower-income BC residents will continue to receive the HST credit until the PST is re-established. At that point, the HST credit will be replaced by the PST credit. During the transition period, the Province will provide quarterly updates on the website (News Release – British Columbia Ministry of Finance, August 26, 2011)

Posted on October 24, 2011