Advertisement

B.C. Budget: PST changes on heating, used car sales could cost you more

Click to play video: 'B.C. budget includes a few tax changes'
B.C. budget includes a few tax changes
WATCH: The provincial government's newly announced budget includes a few tax changes. Some that British Columbians will soon be on the hook for, and others that may save you money. Richard Zussman has more on the changes. – Feb 25, 2022

Tax changes in B.C.’s newly-released 2022 budget will leave British Columbians paying a little more for some items, and deliver savings on a few others.

Among the changes raising eyebrows is a PST tax shift on home heating equipment.

Fossil fuel-powered heating equipment, such as furnaces and water heaters, will see a seven-per cent tax hike to 12 per cent as PST is now applied to existing GST.

At the same time, heat pumps have been made PST exempt, as the province looks to incentivize consumers to move away from devices that produce carbon emissions.

“Explaining to the customers why they are adding another higher percentage on the tax to what they buy in the gas products is really hard for me,” Ron McMyn, owner of Big Valley Heating told Global News.

Story continues below advertisement

McMyn said switching consumers over to electric is not always easy, noting some may find themselves on the hook for the expensive cost of breaker and line upgrades to be able to handle the more power-intensive gear.

Click to play video: 'B.C. budget 2022:post-pandemic recovery plan'
B.C. budget 2022:post-pandemic recovery plan

He said heat pumps may also not be the best solution for those who don’t live on the south coast.

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

B.C. Finance Minister Selina Robinson disputed that, telling Global’s Focus BC “we know the technology is changing are there are heat pumps for colder climates.”

With B.C.’s carbon tax also set to climb on April 1, she said it was more important than ever to help people move to less carbon-intensive heating options.

Story continues below advertisement

“We know the carbon price will keep going up, so this is a real incentive to get people to switch to heat pumps so they can avoid the increase,” she said.

Another tax change many may have missed in this weeks’ budget affects PST on the sale of used vehicles.

Instead of charging tax on the sale price of the vehicle, the province will now apply the tax on what ICBC considers the average price of the make and model of that vehicle.

Click to play video: 'B.C. budget 2022: Shifting the way the province deals with the wildfire threat'
B.C. budget 2022: Shifting the way the province deals with the wildfire threat

BC Liberal Finance Critic Peter Milobar said that could leave car shoppers on the hook for hefty tax increases.

“A 2014 Dodge Caravan that we found listed in Surrey that a lot of people would be, that vehicle is probably worth about $4,000 now more than they used to do because of scarcity,” he said.

Story continues below advertisement

“That means almost another $200 in provincial sales tax.”

The province says the move was implemented to prevent people from fudging vehicle transfer paperwork to try and get out of paying PST.

“This is about private sales, and making sure that people aren’t undervaluing the car and using the loophole of just putting in a number that requires them to pay less,” Robinson said.

“This is really about making sure everyone is following the rules, and this is something other provinces do.”

Cars and home heating aren’t the only things being hit with tax hikes — B.C. smokers will also find themselves paying more.

The province is applying PST to tobacco products, meaning smokers will find themselves on the hook for seven per cent more.

Sponsored content

AdChoices