PST hike on gas-fuelled home heating appliances leaves B.C. Interior out in the cold | iNFOnews | Thompson-Okanagan's News Source
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PST hike on gas-fuelled home heating appliances leaves B.C. Interior out in the cold

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Image Credit: ADOBE STOCK

B.C. plans to raise the provincial sales tax on home heating appliances powered by fossil fuels and remove it on heat pumps, something a heating and cooling profession in Kamloops calls unfair.

In colder climates heat pumps aren’t powerful enough to meet the needs of many home and business owners, according to a Kamloops heating and air conditioning professional. 

“In Surrey you could buy a heat pump and heat your house, but in Prince George, a heat pump’s not going to do it,” president of Rapid Cool Mechanical Steve Warner said.

Furnaces are the only alternative or straight electric heat if power is available, he said.

The provincial government is making a tax adjustment to try and displace gas-powered furnaces, fireplaces and boilers with heat pumps. The PST on fossil fuel heating systems is going from 7% to 12% on April 1, the same day, the PST will no longer apply to heat pumps.

READ MORE: Challenges of climate change focus of B.C. government's budget, says finance minister

But taxing gas heating appliances isn’t going to deter people from buying them in B.C.’s Interior and northern communities, Warner argues, because heat pumps are not a viable alternative.

The tax increase will apply to heating or cooling units run on fossil fuels, which includes central forced air furnaces, unit heaters, fireplaces, boilers, storage water heaters, instantaneous water heaters and air conditioners.

An ageing hot water tank that needs to be replaced soon.
An ageing hot water tank that needs to be replaced soon.

In an email to the Ministry of Finance asking how the tax change is fair for British Columbians living in colder communities, the response included five bullet points that made two points relevant to the question – heat pumps work better than they used to, and rebates are available for people in rural and northern communities.

“Heat pump technology has made significant advancements in recent years allowing people in colder climates in B.C. to benefit from the efficiency and savings associated with this cleaner option,” reads an emailed statement from the Ministry.

“The province is acting to make clean energy more affordable for people,” reads the statement. Rebates on heat pumps are available through B.C. Hydro.

Kamloops MLA and B.C. Liberal finance critic Peter Milobar did not immediately respond to a request for comment.


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