VICTORIA -- As B.C. election campaigns enter their second week, the BC Liberal party is promising to eliminate the provincial sales tax (PST) for one year if elected to help the province’s economy recover amid the COVID-19 pandemic.
If elected, the Liberals say that after one year without PST, the provincial sales tax would be reduced from roughly seven per cent to three per cent for one more year.
“Countless people are still out of work, small businesses are facing bankruptcy, and the public health threat from COVID-19 is still very real,” said BC Liberal Leader Andrew Wilkinson in a release Monday.
“Eliminating PST puts more money in people’s pockets, stimulates growth for struggling small business, and helps British Columbians who are struggling to get by,” he said.
According to the Liberals, eliminating PST for one year will save a family of four approximately $1,714 during the year, if both parents earn $60,000. A single parent earning $60,000 would save approximately $924 over the same period.
In the second year, with a lowered PST, the Liberals estimate that a family of four with two $60,000 income earners would save $979. Similarly, a single parent with the same income would save approximately $528.
Overall, the BC Liberals say that without the collection of PST for one year, the provincial government would lose $6.88 billion in taxes from British Columbians.
The next year, $3.93 billion would not be collected.
Monday’s announcement marked one of the first major campaign promises that the BC Liberals have unveiled since the election was called.
