B.C.’s provincial sales tax expanded to include clothing materials such as yarn and patterns and repair and alteration services effective Oct. 1.
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B.C. retailers and customers who make, repair or alter clothing and knit goods are now paying the provincial sales tax on items including patterns, yarn, thread and fabric, along with repair and alteration services, after related tax exemptions ended Thursday.
The change follows the 2026 provincial budget released in February, which expanded the seven per cent provincial sales tax to clothing materials and services starting Oct. 1.
A broader PST expansion to professional services, residential landlines, toll-free telephone services and basic cable TV services was included in the February budget, but an expansion to professional services was later paused due to the ongoing trade war with the United States.
Julia Huggett, owner of Beehive Wool Shop on Douglas Street in Victoria, said supply-chain issues have already increased the price of yarn and that the PST is “one more hit” for customers. She said she saw more shoppers stock up on yarn at the end of September as the Oct. 1 tax deadline approached, and estimated about 80 per cent of her sales involve products that had previously been tax-exempt.
Ryan Davis, owner of fibre-arts store Knotty By Nature on Fernwood Road, said he was disappointed that the fabric and fibre sector was not included when the PST rollout pause applied to professional services. “They’re not valuing our sector,” he said, adding that he views fibre work as environmentally friendly and beneficial for mental health.
Davis said yarn prices have doubled since he opened his shop in 2008, and argued that high costs are pushing crafts such as knitting, weaving, needle felting and crocheting toward being a luxury activity.
Bizz McKilligan, owner of The Green Thimble sewing shop on Douglas Street in Victoria, said it does not make sense to discourage repairs or alterations that keep clothes in use. She called the decision “insanity,” saying it often affects low-income or vulnerable people who mend their own clothing.
McKilligan said only about 10 per cent of her sales come from previously tax-exempt items such as sewing patterns, garment fabrics and mending supplies, and that her business also sells used and refurbished sewing machines and accessories aimed at supporting sustainable crafting. She said she wants more people to learn basic sewing skills to prevent clothing waste.
Her employee, Lasha Kizuk, said it has been difficult to explain to customers why the same thread they normally buy has increased in price. “If you want to encourage people to not throw away their clothes, charging them to do so is an interesting choice.”
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