Taking Action on the BC PST Changes
As reported last week, the Government of British Columbia has announced some dramatic changes to the Provincial Sales Tax in the Province affecting HVAC equipment (see Notice 2022-003 Provincial Sales Tax on Fossil Fuel Combustion Systems and Heat Pumps). Effective April 1, 2022, the PST rate on the purchase or lease price of fossil fuel combustion systems will increase from 7% to 12%. Also effective April 1, 2022, heat pumps will be exempt from PST.
While these tax changes are in line with the government’s commitment to transition the province to zero carbon emissions, they were not only introduced abruptly and without any warning to industry, but they did not benefit in any way from consultation on impacts and implications. The extremely tight timeline to come into compliance is causing a major disruption in the industry.
Last week, HRAI sent a letter to Minister of Finance Selina Robinson requesting a six-month extension on the implementation deadline. Other industry associations (CIPH, TECA) have made similar appeals for consideration. HRAI has already been advised that its letter has gotten the attention of the Minister.
To lend support to its submission, however, HRAI is encouraging members in the province to write to their Members of the Legislative Assembly (MLAs) spelling out the challenges that this tax will create for their businesses. Members looking to contact their MLA can get their contact information from at this website: https://www.leg.bc.ca/learn-about-us/members.
Members seeking assistance on this may contact Victoria Cross at 778-808-8674 or email victoria@twowestgroup.com.
For more information, contact Martin Luymes at 1-800-267-2231 ext. 235 or email mluymes@hrai.ca.
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