The Province of British Columbia (“BC”) will reinstate the 7% PST (Provincial Sales Tax) and the 5% GST (Goods and Services Tax) tax system following the 2011 referendum decision to extinguish the HST (Harmonized Sales Tax) in BC.
A firm transition date has not been set, however a target date is March 31, 2013.
In the interim, the HST will continue to apply at the full 12% per cent rate until the PST is reinstated. HST policy changes announced pending a “No” result in the referendum will not proceed.
All permanent PST exemptions will be reinstated. The BC Minister of Finance has announced that some administrative improvements may be made in order to streamline the PST.
The transition period is expected to take 18 months. During this period, 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.