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Release: Chamber Calls on Province to Abandon $500+ million PST Expansion as Registration Opens for Businesses

Release: Chamber Calls on Province to Abandon $500+ million PST Expansion as Registration Opens for Businesses

Release:  Chamber Calls on Province to Abandon $500+ million PST Expansion as Registration Opens for Businesses

FOR IMMEDIATE RELEASE -  April 1, 2026

Langley, BC – The Greater Langley Chamber of Commerce, BC’s fastest-growing chamber,  is calling on the provincial government to reconsider its planned expansion of the Provincial Sales Tax (PST) to professional services, as businesses become eligible to begin registering to collect the new tax today.

The change, announced in Budget 2026, is expected to rake in more than $500 million annually for the Province, but the Langley Chamber says it will come at a significant cost to businesses across British Columbia.

“This is a structural cost increase on businesses at a time when many are already under pressure,” said Cory Redekop, CEO of the Greater Langley Chamber of Commerce. “Once it kicks in on October 1, this tax becomes a permanent cost that will get embedded in the price of all the professional services that are impacted, increasing costs for everyone.”

Beginning October 1, PST will begin applying to a range of professional services, including accounting, engineering, security services, and commercial real estate services, which are currently not taxable.

“Every business relies on accounting and bookkeeping services, and increasingly many require security services to protect their employees and operations from street-level crime and disorder,” said Redekop. “For these businesses, this change will directly increase their costs of doing business and will only make it more expensive to keep their doors open.”

The Chamber says the issue is not just the tax itself, but how it functions. 

Because PST, unlike the GST, cannot be claimed back as an input cost, the tax compounds through the economy, increasing costs at multiple stages of business activity.
The Chamber also raised concerns about competitiveness, noting that Alberta has no provincial sales tax and businesses in provinces with Harmonized Sales Taxes (HST) can recover input taxes. “This puts BC businesses at a disadvantage when competing nationally for investment, talent, and growth,” Redekop added.
 
The Langley Chamber is also concerned that this expansion could signal further changes looming.

“We are concerned this is the start of a broader shift toward taxing core business inputs,” said Redekop. “If the government targets other professional services like marketing, graphic design, IT, or consulting, the cost impacts would multiply across the economy and would really rack up for our business community.  We’re hoping this isn’t the ‘canary in the coal mine’ for more taxes to come.” 

The Chamber has formally contacted the Minister of Finance to request that the Province reconsider the measure before it takes effect.

“There is still time to get this right,” said Redekop. “We support responsible approaches to addressing fiscal challenges, but increasing the cost of doing business is not the path to a stronger economy.”

The Langley Chamber is encouraging businesses to share their feedback and experiences with the Chamber and with government directly to support ongoing advocacy efforts.

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For media comments or for more information, please contact:
Cory Redekop
CEO
Greater Langley Chamber of Commerce
o. 604 371 3770 / c. 604 318 0420 / e. cory@langleychamber.com
 
About the Greater Langley Chamber of Commerce
The Greater Langley Chamber of Commerce is BC’s fastest-growing and one of Canada’s Top 3 fastest-growing chambers of commerce, representing over 1,200 member businesses, non-profits, and organizations across Langley City, the Township of Langley, and the surrounding region. The Chamber works to connect business and community leaders, support economic growth, and advocate for a competitive, thriving business environment.  Learn more at LangleyChamber.com