Industry Associations Reply to New B.C. Tax Law
March 15, 2022 | By Logan Caswell
The announcement was made on February 22, leaving just over a month to prepare for the rapid change.
HRAI and CIPH have both expressed concern over a recent taxation announcement from the B.C. provincial government which would see the province rise sales tax on fossil fuel appliances while eliminating PST from heat pumps.
The announcement was made on February 22, leaving just over a month to prepare for the rapid change set to take effect April 1.
“It is very disappointing that the province of B.C. would introduce tax measures that affect our sector so directly and so significantly without providing any opportunity for consultation and input,” said Sandy MacLeod, President & CEO of HRAI in a letter to the province. “The new measures raise many questions for industry members and will pose some real challenges to implement, especially in the extremely tight timeframe provided.”
As of April 1, provincial tax on the purchase or lease price of fossil fuel combustion systems is expected to increase from 7% to 12%, while heat pumps will be exempt from PST.
“We are concerned with the rapid implementation of a new tax structure without any consultation, while industry will be forced to enact your new tax structure,” said Ralph Suppa, President & General Manager of CIPH in a letter to the province. “If this provincial tax is implemented, we recommend that it be limited to the fuel burning appliance only, as all other parts and components serve many purposes and systems.”
For complete details on the notice listed by B.C., please click here.