The B.C. government will freeze carbon taxes, defer the new payroll tax for employers and introduce a number of other tax deferrals as part of an emergency COVID-19 Action Plan.
The $5 billion plan includes $2.8 billion in direct support for health care and ordinary citizens, and $2.2 billion for business and economic recovery. The latter includes targeted tax relief.
"I want businesses to know that we're here to support you, as we get on the path to recovery," said Finance Minister Carole James.
The province will defer the payments by business of a number of provincial and municipal taxes owed by business, including PST, carbon and fuel taxes.
The provincial carbon tax, which was set to increase April 1, will be delayed to September 30.
Effective immediately, businesses with a payroll over $500,000 can defer their employer health tax payments until Sept. 30, as well. Businesses with a payroll under this threshold are already exempt.
The province will extend filing and payment deadlines for the provincial sales tax (PST), municipal and regional district tax, tobacco tax, motor fuel tax and carbon taxes.
Also new provincial taxes that were supposed to go into effect - the new e-commerce tax and a tax on sweetened carbonated drinks -- are also now deferred.
School tax paid by business and industry will be cut in half -- a measure worth $500 million.
"Tax savings for example for the average urban commercial property owner is going to be about $4,000," James said.
Commercial landlords are expected to pass the savings onto pass savings on to tenants with triple-net leases.
The funding announced Monday includes $1.5 billion for a longer term recovery plan to help some of the hardest hits sectors, like tourism and hospitality, get back on its feet, once the immediate crisis is over. The government has struck a Recovery Task Force made up of business and labour representatives to help develop a recovery plan.
"When we start seeing signs of that recovery, we help provide stimulus where it's needed the most," James said.
