BC Tax Grab Hits Crafters: PST on Yarn and Fabric

Starting October 1st, British Columbia will impose provincial sales tax (PST) on materials used for making or mending clothes, including yarn, fabric, and thread. This change, outlined in the B.C. government's 2026 budget, removes a previous exemption for these goods. The government states this expansion of the PST base is to diversify revenue sources and align B.C. with tax practices in other provinces.

Cheryl Brown, owner of Kelowna Yarn & Needlecrafts, expressed concern that the seven-percent tax will disproportionately affect her clientele. These customers often invest more in durable, handmade items as an alternative to fast fashion. Brown highlighted that the added cost will be particularly challenging for individuals on fixed incomes, forcing difficult economic choices. She also noted the broader impact on small businesses that serve as community hubs.

Brown, whose Master's thesis from UBC Okanagan focused on the well-being benefits of activities like knitting, feels the tax contradicts efforts to combat social isolation. She points out that governments often fund initiatives to build community, yet this tax could inadvertently penalize those seeking connection through craft. Many customers remain unaware of the upcoming change, but Brown anticipates potential impacts on businesses like hers.