VANCOUVER — Premier David Eby announced Friday that the provincial government is pausing a planned expansion of the provincial sales tax, unveiling a $90-million support package for businesses affected by international trade tensions and directing BC Ferries to have future vessels constructed in British Columbia.
Pause on tax expansion and specified exemptions
The decision to delay the provincial sales tax (PST) expansion came after consultations with businesses facing tariff pressures related to a trade dispute with the United States, Eby said during his annual speech to party delegates in Vancouver. He said specific professional services will be exempted from the postponed tax changes, including accounting, bookkeeping, architectural and engineering services.
The move marks a retreat from a previously signalled tax change and was framed by the premier as a response to immediate economic pressures facing small and medium-sized enterprises.
Support package aimed at firms hit by tariffs
Alongside the pause, the government is rolling out $90 million in assistance designed to help businesses grappling with the consequences of U.S. trade actions. The funding is intended to target companies experiencing tariff-driven disruptions, though the premier did not provide a detailed breakdown of how the money will be apportioned during the event.
Officials said the announcement was prompted by direct feedback from business owners and industry groups who warned that the proposed PST changes would compound the strain from tariff-related costs.
Local shipbuilding and public procurement
In a measure aimed at supporting the provincial marine sector, Eby directed BC Ferries to ensure that future vessels are built in British Columbia. The move reflects a growing emphasis by the provincial government on supporting local manufacturing and preserving jobs in coastal communities that depend on shipbuilding and marine trades.
Mental-health and substance-use care expansions
During his address, Eby also renewed his government’s pledge to expand involuntary care capacity for people with severe, overlapping mental-health and substance-use challenges. He said new involuntary-care beds will be added in every region, with forthcoming announcements specifically identifying additions in the Interior and on Vancouver Island.
The commitment follows recent provincial efforts to respond to rising demand for co-ordinated care for people whose illnesses pose serious risks to themselves or others.
Political context and election readiness
The speech came amid speculation over election timing. Eby told the delegates his caucus and Elections BC had been advised to be “election ready” in light of disruptions posed by the U.S. trade dispute. During a question-and-answer session he declined to call an election, saying he had “no announcement about an election.”
Party delegates press provincial timing concerns
At the same convention, Richmond city councillor Alexa Loo — a candidate for mayor — introduced an emergency resolution seeking a commitment from the NDP government not to call a provincial election during the municipal voting window on Oct. 17. Delegates supported the motion overwhelmingly, citing concerns that overlapping campaigns suppress local turnout and stretch election staff.
“British Columbia voters deserve the opportunity and respect to have unfettered attention on local issues during municipal elections, without being overshadowed by a provincial election.”
Loo, who presented the draft motion Thursday, argued concurrent elections create confusion for voters and unfair pressure on local candidates and election administrators. Eby said he would consider the resolution.
Quick reference: what the government announced
- Pause on planned expansion of the provincial sales tax.
- $90 million in support for businesses affected by tariff challenges.
- Exemptions to include accounting, bookkeeping, architectural and engineering services.
- BC Ferries directed to have future vessels built in British Columbia.
- Involuntary-care beds to be increased in every region, with additions planned for the Interior and Vancouver Island.
Table: Announcements at a glance
| Measure | Detail |
|---|---|
| Tax policy | Pause on PST expansion; exemptions for certain professional services |
| Business support | $90-million package for firms affected by U.S. tariffs |
| Procurement | Direction for BC Ferries to build future vessels in B.C. |
| Health care | More involuntary-care beds across regions; future Interior and Vancouver Island announcements |
The premier’s announcements aim to balance economic relief for businesses with commitments to local industry and social services. As details on the $90-million package and the timing of new care beds are worked out, municipalities and business groups will be watching for operational specifics and eligibility rules.
Reporting from the convention in Vancouver. Further details may be released by the provincial government in subsequent briefings.
