News & Events Province Pauses PST Expansion to Professional Services
September 18, 2026
The Province of British Columbia announced today that it is pausing the planned expansion of the Provincial Sales Tax (PST) to professional services, which was scheduled to take effect on October 1, 2026.
The proposed expansion was announced as part of Budget 2026 and would have applied PST to a range of professional services used by construction employers and projects, including accounting and bookkeeping, architectural, engineering and geoscience services, non-residential real estate services, and security and private investigation services.
In CLR’s February response to Budget 2026, we identified the proposed PST expansion as a concern for unionized construction employers, particularly because of its potential to increase project costs and affect the competitiveness of B.C. construction companies. CLR committed to advocating on behalf of members regarding the cumulative impact of the proposed change.
Today’s announcement means the PST exemption for these professional services will remain in place while the expansion is paused. The Province stated that the decision was made in response to ongoing international trade disruptions and economic uncertainty and estimates the pause will result in approximately $260 million in savings for people, businesses and local governments in 2026-27.
For CLR members, this means the planned October 1 PST expansion will not proceed as scheduled. Businesses that purchase affected professional services will not face the additional PST costs that had been set to take effect next month.
CLR welcomes the Province’s decision to pause the expansion. At a time when construction employers are managing rising costs and broader economic uncertainty, maintaining the existing exemption avoids adding further costs to projects and business operations.
CLR will continue to monitor developments related to the PST and other measures affecting the competitiveness of B.C.’s unionized construction industry and will keep members informed of any further changes.
Reference:
B.C. pauses PST expansion to professional services amid ongoing trade uncertainty