Tuesday, January 23, 2018

PST Phase out for Electricity (non residential customers)

PST Phase out for Electricity
Effective January 1, 2018, taxable purchases of electricity (e.g. electricity for business use)
are subject to a lower PST rate of 3.5%. Electricity will be fully exempt from PST effective April 1, 2019.
https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-203-energy-conservation-ice-fund-tax.pdf (p.5)
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https://news.gov.bc.ca/releases/2017fin0035-001987   *excerpts below)
Eliminating the PST on electricity will translate into savings of more than $150 million annually for B.C. businesses. This will help them create more jobs for British Columbians, expand into new markets, and reinvest in new technologies.
Estimated annual PST paid for electricity use, by industrial sector is as follows:

Manufacturing, including pulp and paper: $46 million
Other services (repair and maintenance, personal care services, etc.): $27 million
Wholesale and retail trade: $21 million
Primary industry (forestry, mining, etc.): $21 million
Accommodation and food services: $11 million
Transportation and warehousing: $11 million
Arts, entertainment and recreation: $5 million
Construction: $2 million
Other industry sectors: $17 million
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Email reply from Minister of Finance's office:
Thank you for your inquiry.
Prior to January 1, 2018, the only general exemption from PST on electricity was if it was delivered to a residential dwelling. As of January 1, 2018, the rate of PST on electricity is reduced from 7% to 3.5% for all other customers who are non-residential customers. This includes municipalities.
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Don Quixote Note:
For City of Vernon the estimated savings for 2018 is $81,000. ($33,000 for sewer ratepayers , $19,000 for Recreational electricity, and $29,000 for street lights , civic buildings etc. )



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