The tax rate on electricity will be reduced to 3.5% from 7%, effective Oct. 1, 2017 and fully exempt effective April, 2019. Eliminating PST on electricity is estimated to save small- and medium-businesses about $50 million per year. Eliminating PST on electricity over the coming two years will result in saving small, medium, large and industrial businesses throughout the province $164 million by 2019-20, which further encourages use of clean B.C. hydro power. This measure was recommended by the Commission on Tax Competitiveness.
It’s another change to help support workers, jobs and the ability of businesses to compete internationally and remain resilient in a challenging global trade climate.
(Residential electricity is already exempt.)