BC Finance Committee Recommends Eliminating the PST on Electric Bikes

The Province of British Columbia’s Select Standing Committee on Finance and Government Services have recommended eliminating PST on electric assist bicycles.

Currently, bicycles and transportation fares in BC are exempt from PST charges, and clean energy vehicles are eligible for rebates up to $5,000. However, new electric bicycles and their electric parts are subject to the PST, and are not eligible for rebates.

The committee’s recommendation appeared in their Report on the Budget 2019 Consultation, on page 78:

Encourage the use of electric, cargo and adaptive bicycles by eliminating the PST on electric assist bicycles.

The also includes input from the BCCC on electric bikes (page 73):

The British Columbian Cycling Coalition further identified opportunities to extend cycling as a transportation option for more people with the use of electric, cargo and adaptive bicycles. Electric bicycles can increase the number and length of cycling trips, and enable people with physical challenges to cycle for transportation.

The recommendation to exempt cargo bicycles from the PST is notable, as they help people to carry children or larger loads on their bicycles, and can be used by businesses for deliveries. Financial incentives can help stimulate the adoption of cargo bicycles in order to encourage the use of active transportation for school-based travel and goods movement.

By enabling more people to cycle further for more trips, electric bikes can also help B.C. meet its climate goals.