Stop the Squeeze: Why GVBOT Is Speaking Up on the PST Expansion

B.C. has everything it needs to grow, build, and meet this moment. We have the people, the expertise, and the resources. But that growth is being made harder by the provincial government’s decision to expand the Provincial Sales Tax (PST) to professional services starting October 1, 2026.

That's why we have launched Stop the Squeeze, a campaign rooted in a straightforward concern: there is no workable version of this tax for the people and organizations who will ultimately pay for it. Applying PST to professional services, including accounting, bookkeeping, security services, and AEG work, will raise the cost of doing business, increase the cost of homebuilding, and add pressure to public projects and taxpayers across the province.

What is the PST Expansion? 
On Feb. 17, 2026, the B.C. government released Budget 2026, which introduces an expansion of the provincial sales tax (PST) to several professional and business services. Currently, only legal services are subject to PST in British Columbia. The PST expansion will tax the services that businesses across the province depend on every day. Accounting and bookkeeping, security services, non-residential real estate services, and architecture, engineering, and geoscience work are all subject to the new tax. 

These are not optional or discretionary services. For many businesses, accounting is legally required. Security protects employees and customers. Engineering and architecture are required to build housing and infrastructure. Non-residential real estate services support commercial transactions across the province.

On February 24, a week after the 2026 BC Budget was released, we led a coalition of B.C. business leaders urging the Province to scrap the tax. To learn more about this advocacy effort, read our Media Statement. 

At the Heart of the Issue is a Tax on a Tax
In B.C., PST generally cannot be claimed back by businesses. That means when professional services are taxed, the cost does not stay in one place. It gets built into project budgets, passed through supply chains, and embedded in the final price of homes, services, and infrastructure. For example, When a developer pays PST on engineering services, those costs are embedded in the price of a building. When a small business pays PST on its accountant, it cannot recover that cost. It simply absorbs it, or passes it on. Taxing these services means taxing the people who build homes, keep businesses compliant, and help communities function. 

Tim Lang, President of Proshow Audio Visual, has estimated the tax will cost his business approximately $5,000 a year.

Mike Jagger, CEO of Provident Security Corp., has warned the legislation creates a "massive new administrative burden" and raised concern that mandatory safety systems like fire alarms could become taxable.

Jon Stovell, CEO of Reliance Properties Ltd., has warned that adding PST to professional services is a "tax on housing" that could "scuttle projects" already on the brink due to high construction costs.

David Gens, CEO of Merchant Growth Ltd., described the cumulative pressure on small businesses as "death by a thousand cuts." (Business in Vancouver, March 31, 2026).

The Economic Impact: British Columbians Pay More 
A young family buying a home pays more before the foundation is poured. Small businesses pay more just to keep their books in order. Non-profit housing providers face higher costs that can put affordable units further out of reach. Public infrastructure projects, including schools, hospitals, and transit, also become more expensive. At a time when affordability is already under strain, this is the wrong move for B.C. The numbers show the scale of the problem: 

• B.C. provincial revenues have grown 48 per cent since 2020 - a record rate that undermines the government's case for new revenue tools targeting business services.
• The Canadian Federation of Independent Business (CFIB) estimates compliance costs could reach $7,000 per employee per year for affected businesses.
• Only 4 per cent of B.C. small business owners say they feel the provincial government is on their side.
• Public polling shows 46 per cent of British Columbians view the PST expansion as unfair, with a net sentiment of negative 9 points.
• B.C. Budget 2026 adds more than $4 billion in new business taxes, of which the PST expansion is a significant component.

Our primary position is clear: the Province needs to scrap the PST expansion to professional services. It is a tax on compliance, a tax on housing, and a tax on the inputs British Columbia's economy depends on. The government should withdraw the measure and work with the business community on a more balanced approach to revenue.

Email your MLA Today 
Through Stop the Squeeze, we are raising awareness of what is at stake and encouraging members and the public to speak directly to their MLA, the Minister of Finance, and the Premier. The campaign website gives you and the public a way to learn more, understand what is at stake, and take immediate action.

One message may take only a few moments to send, but collective action can help ensure the government understands the real-world consequences of this tax.

The message is clear: B.C. should be making it easier to build, invest, and grow, not adding new costs that squeeze families, employers, and community builders.

The clock is ticking, but there is still time for government to change course. Learn more and take action through Stop the Squeeze.