Yarn, patterns now subject to PST, along with alterations
British Columbia has expanded its seven percent provincial sales tax (PST) to include yarn, fabric, patterns, and clothing repair services. Local business owners express concern that these new taxes will make crafting a luxury activity and hurt local shops.
Why it matters
Illustrates the impact of provincial tax policy changes on small businesses and consumer hobbies.
Making and repairing clothing and knit goods just got more expensive.
Patterns, yarn, thread and fabric for clothing, along with repair and alteration services, are now subject to the PST, after tax exemptions for certain goods and services ended Thursday.
The 2026 provincial budget, released in February, included an expansion of the seven per cent provincial sales tax to professional services, basic cable TV services, residential landlines and toll-free telephone services, along with clothing materials and services, set to take effect Oct. 1.
Expansion of PST to professional services like accounting, architecture and engineering was later paused because of the ongoing trade war with the United States.
Julia Huggett, owner of Beehive Wool Shop on Douglas Street in Victoria, said supply-chain issues caused by global conflicts have already hiked the price of yarn, calling the PST "one more hit" for customers.
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