PST on Electricity


The BC Provincial government revealed its Budget and Fiscal Plan 2017/18 – 2019/20 today.

One announcement of note is that the provincial sales tax on taxable electricity is being phased out.

Effective October 1, 2017, the tax rate on electricity will be reduced to 3.5 per cent from 7 per cent of the purchase price.

Effective April 1, 2019, electricity will be fully exempt from provincial sales tax

Of course, residential electricity has been exempt for a while. So what this means is that businesses and organizations who had to pay the PST previously will no longer have to.

Looking forward, if Electricity is exempt, but Natural Gas is not, how does a 7% reduction in cost factor into your decision as to which energy sources to use?