Ministry of Finance
The Province will reinstate the combined 12 per cent PST and GST tax system following the referendum decision to extinguish the HST in B.C.
An action plan has been established to guide the transition process and help ensure an effective and orderly transition from the HST to the PST plus GST system in B.C.
The PST will be reinstated at seven per cent with all permanent PST exemptions. The Province may make some common sense administrative improvements to streamline the PST.
The transition period is expected to take a minimum of 18 months, consistent with the report of the independent panel on the HST. During this period, the provincial portion of the HST will remain in place at seven per cent. Eligible lower-income British Columbians will continue to receive the B.C. HST Credit until the PST is re-implemented. The B.C. HST credit will then be replaced by the re-implemented PST credit.
During the transition period, the Province will provide quarterly updates on the progress of returning to the PST.
Minister of Finance Kevin Falcon said, “I can assure British Columbians PST will not be applied to such items as restaurant meals, haircuts, bikes and gym memberships - just as it was before the HST was introduced in B.C.”