Heating Systems Tax Increase

Last Updated on March 10, 2022 by Showrooms Online

A heating systems tax increase has been implemented in British Columbia which increases the PST tax on heating systems that burn fossil fuels to 12% and removes the PST on heat pumps.

Notice 2022-003 Issued: February 2022
Ministry of Finance, PO Box 9442 Stn Prov Govt, Victoria BC V8W 9V4
Provincial Sales Tax (PST) Notice
Effective April 1, 2022, the PST rate on the purchase or lease price of fossil fuel
combustion systems will increase from 7% to 12%. In addition, effective
April 1, 2022, heat pumps will be exempt from PST.

This is only the beginning of eliminating fossil fuels for home heating.

Heating Systems Tax Increase — Image by Hans Braxmeier from Pixabay

Federal Fuel Tax

The federal fuel tax on my last bill for propane was $40.79 and HST was also added to this tax. Plus, the price of the propane per litre reached a high that we have never seen before. This carbon tax is scheduled to continue to rise, driven by the policies to contain climate change.

Home Energy Efficiency

Now is the time to call a renovator and undertake an energy-efficient upgrade of your home. An energy retrofit is more economically done if there is a need to do some major maintenance on your home right now. However, as the price of energy increases, the economics look better and will look even better in hindsight by 2030.

An Energy Consultant, certified by NRC, can advise on what needs to be done and this evaluation qualifies you for a lot of the rebate programs that are available.

Extra insulation and air sealing your home are the two projects that you can undertake to make a big dent in your heating bill. Air sealing and insulation also result in a more comfortable and healthier indoor environment. So it is not all about ROI.

At the same time look at your ventilation with an HRV or ERV. Also, upgrade your filtration to MERV 13. Improved ventilation is directly related to indoor air quality and the reduction of fine airborne particles. MERV 13 is also capable of reducing the circulation of viruses.