Business in BC can now apply for Provincial Sales Tax rebates on purchases or leases of machinery and equipment, including tools, furniture, computers, software and zero-emission vehicles.

The rebate, announced in September, allows incorporated businesses to recover 100% of PST on most machinery and equipment purchased between Sept. 17 last year and Sept. 30 of this year.

Applications can be made until Sept. 20 for the first window. A second window of eligibility begins in October and continues to March 31, 2022. Rebate eligibility is based on the Canada Revenue Agency’s Capital Cost Allowance classes.
Apply for PST Rebate

Monday’s speech from the throne offered few details about the provincial government’s plan to help businesses recover from the pandemic. With case counts climbing over the last few weeks and the rapid spread of variants of concern, our economic recovery remains precarious one week before the province unveils its 2021 budget.

Aside from urging ongoing vigilance and a spirit of resilience, the throne speech promised that the April 20 budget will invest in capital projects and infrastructure to create jobs and boost local communities. There will also be money to help people disproportionately hurt by the pandemic, including gig workers and people working face-to-face with customers in retail and the hospitality industry. Many of those most affected are women, people of colour and young people.

“The Chamber is looking for next week’s budget to reassure businesses struggling to get through the pandemic,” Chamber CEO Bruce Williams says. “We want to see investments that help employers find and keep workers. We need accessible child care so that parents can stay in the workforce, and we need training programs that ensure workers have current skills for the many jobs that are in demand but are going unfilled.”

The Chamber and the Downtown Victoria Business Association commend the City of Victoria for reducing property taxes for business. It’s the right thing to do as the pandemic continues to create challenges for our region’s economy.  

The City of Victoria has approved a two per cent decrease in taxes — about $146 for business with an average assessed value of $647,000. During 2020, the assessed value of commercial property dropped by an average of 5.29 per cent. Residential assessed values in the city increased by 2.26 per cent.  

“We’re grateful that Victoria council has acknowledged the struggles businesses are facing with uncertain conditions and the pace of change spurred by the pandemic,” Bruce Williams, CEO of the Greater Victoria Chamber of Commerce says. “We’re seeing many businesses pivot successfully and develop innovations that allow them to adapt. Reducing taxes during this time shows that the city wants to work with the business community, so that all of our employers and operators have a chance to get through this together.”  

The tax break reflects an adjustment to the city’s current policy of equalizing changes to taxes across all classes. If council had chosen to follow that policy, the average assessed business would have had a tax increase of $122.

The Chamber will recap property tax rates for businesses in all Greater Victoria municipalities as the information becomes available in the coming weeks.
Chamber News Release

The federal budget will be unveiled on April 19, and is expected to confirm ongoing support for wage and rent subsidies and other relief programs that have been vital for businesses affected by the pandemic.

Working with the Canadian Chamber, we have been advocating to government to offer direction on how investments in the private sector can create jobs and encourage the growth of new and existing businesses.

Read next week’s BizNews for more analysis on the federal budget, and what it will mean for Greater Victoria.

Related: The Chamber’s column in Douglas Magazine

BC has started the next phase of the largest immunization effort in its history, and initial reports are that the province-led rollout has gone well. Under Phase 3, everyone in British Columbia can follow three steps to get vaccinated. After registering online or over the phone, you will be contacted to book an appointment when you are eligible based on where you fit in the criteria for the immunization plan. In Greater Victoria, first doses of vaccine will be administered at seven sites including the University of Victoria, Victoria Conference Centre and the Victoria Native Friendship Centre.
 
As the third wave of COVID-19 hits BC, the province remains committed to providing everyone in BC with a first dose of vaccine by July 1, setting the stage for loosening of restrictions over the summer.