The final legislative amendments to complete the Provincial Sales Tax Act were introduced in the legislature today by Finance Minister Michael de Jong, bringing the province one step closer to a re-implemented PST on April 1, 2013.

Bill 2 provides transitional provisions and consequential and related amendments to other statutes that are required for the re-implementation of the PST. Measures include:

• Increasing tobacco tax rates to offset the elimination of the provincial portion of the HST on tobacco, keeping the overall tax and price of tobacco generally constant after April 1, 2013.
• Re-implementing the 2.7 cents per litre tax on propane as of April 1, 2013.
• Clarifying the requirements and taxation of heating oil, non motor fuel oil and natural gas to explain when PST applies and when motor fuel tax applies.
• Minor changes to the New Housing Transition Tax and Rebate Act, which came into force on Dec. 1, 2012.

The act also includes transitional provisions that set out when PST would apply to transactions that straddle April 1, 2013. These rules work in conjunction with the federal government rules for the elimination of HST in B.C. New housing transitional rules were first announced Feb. 17, 2012, and general transitional rules were announced Oct. 15, 2012.

The legislation introduced today reflects the unofficial consolidation released to the public on Jan. 9, and includes changes that have been made to ensure the final version includes all measures necessary for a smooth transition.

The government remains on track to return to the PST April 1, 2013.