Rob Shaw: B.C. facing calls to match GST exemption with PST ...

The B.C. government is facing calls to drop the provincial sales tax on items like children’s toys during the holidays, to match Ottawa’s new federal GST exemption.

The Opposition BC Conservatives on Monday called on Premier David Eby to create a provincial sales tax (PST) holiday that matches the two-month GST holiday set to run Dec. 14 to Feb. 15.

B.C.’s PST is already exempt on some items for which Ottawa will waive the GST — such as groceries, restaurant meals and children’s clothing — but remains in place on children’s toys, video games, artificial Christmas trees and alcohol.

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Provinces that have a Harmonized Sales Tax, such as Ontario, will see both the federal and provincial taxes waived under the move — meaning a Nintendo Switch in Toronto would cost $450 all-in, but $480.50 on Vancouver Island.

“The premier is acting very much like the Grinch when he says we won’t afford the same tax break that other people in other provinces will be getting, provincially, at the same time,” said Opposition BC Conservative finance critic Peter Milobar.

READ ALSO: Freeland says the two-month GST holiday is meant to tackle the ‘vibecession’

Provincial business and retail groups have also pointed out the technical burden that will be required to re-label inventory as GST exempt for two months, while other items retain the PST.

The time for the B.C. government to act and waive the PST is now, said Milobar.

“Once the retailers are in their systems, having to change the tax rates anyways, it’s really not a lot of extra work for them to do that on the provincial side of the equation as well and provide that much-needed savings immediately for people,” he said.

B.C. Finance Minister Brenda Bailey did not provide a comment by deadline Monday.

However, federal Finance Minister Chrystia Freeland called on premiers with their own PSTs to “step up” and match Ottawa’s two-month GST exemption.

The entire federal relief package, which includes $250 cheques for people who earn under $150,000, is expected to cost the federal government $6.3 billion. In B.C., the PST is the single largest revenue source for the provincial government at a time of a projected record deficit of almost $9 billion this fiscal year.