After the Greater Vancouver Board of Trade (GVBT) poorly graded the NDP’s provincial budget a ‘D’, the business organization now calls on the government not to go through with proposed changes to the provincial sales tax (PST).
In a joint media event on Tuesday, the GVBT and the Surrey and White Rock Board of Trade (SWRBT) say that B.C. can not afford policies that raise input prices and discourage investment.
Currently, several professional services are exempt from the PST.
The proposed changes would remove the exemption on a number of businesses, including accounting and bookkeeping, architectural, engineering, geoscientist, commercial real-estate fees, and security and private investigation services.
The GVBT CEO, Bridgitte Anderson, says that the changes will raise input costs, slow decisions to hire and invest, and burden businesses across the province.“At a time where we are facing tariffs, economic uncertainty, and higher borrowing costs, layering on the new PST makes B.C. a harder place to build, to scale and export from,” she said.
Anderson argues that the government does not have a revenue problem, but a spending problem.
“Work instead on solutions that control spending, promote growth, and unlock private sector activity. This is how we protect services, support working families, and secure British Columbia’s future,” Anderson said.
Her sentiments are shared by Joslyn Young, the SWRBT’s CEO. She says that adding new costs sends mixed signals.“Carefully assess the impact on affordability and competitiveness. We need fiscal discipline that supports, not suppresses, investment,” she said.
During a GVBT event last week, B.C. Premier David Eby defended his government’s decision to expand the PST base, saying that the business sector the change would apply to is growing.
“Service delivery is a growing and important sector in our province,” he said on Friday.
“We do require a tax base in order to support the services that your employees count on, everything from healthcare to childcare to education.”
He also compared B.C.’s situation with other provinces.
Related:
“We are expecting a budget from Alberta next week that we have already been warned will have a significant deficit in it,” Eby said.
“Other provinces face big challenges. Ontario will cross the $500 trillion debt level next year.”
When Anderson asked the premier about the reason behind the PST increase during the event, Eby’s remarks did not convince the audience.
“The kinds of signals that this budget sends are very worrying. It is, in fact, sending signals that were not open for business, and it will deter investment and economic growth,” Anderson said after interviewing Eby.
“I wanted to relay that message, and I wanted the premier to understand the level of concern that is being held.”