BC Budget 2026: CPB Canada Opposes PST Expansion
The BC government’s 2026 budget introduces a 7% Provincial Sales Tax (PST) on professional services, including bookkeeping, legal, engineering and architectural services, effective October 1, 2026. While intended to address a $13.3 billion deficit, this policy move raises concerns about its potential economic impact and implications for small businesses that rely on these essential services.
What’s Changing?
For the first time, the BC PST will apply to professional services such as:
- Bookkeeping and accounting
- Legal services
- Engineering and architectural services
While larger corporations may be able to absorb this change through their in-house teams, small businesses typically rely on external professionals (especially for bookkeeping services) to maintain compliance and manage their finances effectively. This new tax burden will increase costs for small businesses and could make it more difficult for them to access the support they need.
Implications for Small Businesses and Enterprises
This change poses significant challenges for small businesses and non-profits already operating on tight margins:
- Increased operating costs could force businesses to absorb them or pass them on to customers, contributing to inflation.
- Limited access to affordable professional services may lead to errors, compliance risks, or reduced growth opportunities.
- Smaller enterprises may face difficult choices, including cutting back on critical expertise that supports their long-term success.
During the pandemic, BC bookkeepers and financial professionals played a vital role in helping businesses navigate uncertainty. This tax risks undermining the essential support they provide to BC’s small business community.
CPB Canada’s Position
We understand the government’s goal of addressing its fiscal challenges, but strongly urge consideration of the broader implications of applying PST to bookkeeping services. CPB Canada advocates for:
- Targeted Exemptions: Exempting bookkeeping services, given their vital role in helping guide small businesses’ financial health and compliance.
- Consultation: Engaging stakeholders to explore alternative solutions that balance the government’s priorities, small business vitality and economic sustainability.
CPB Canada has formalized its concerns and shared them with the Honourable Minister of Finance, Brenda Bailey. We will keep members informed of any ongoing developments.
Working Toward Solutions
While this policy takes effect on October 1, 2026, CPB Canada remains committed to working collaboratively with the government to address the noted concerns. We encourage BC bookkeepers and small businesses to contact their local MLA and express support for CPB Canada’s position on applying PST to professional services like bookkeeping.
Together, we can ensure policies that support BC’s small businesses while meeting the province’s fiscal goals.
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