Lower Priced Cable Plans Result in Higher Taxes

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Higher Taxes for Lower Cost TV Packages?

In case any of you are wondering why your cable bill is higher this month, the answer appears to be in increased taxation. In an interesting turn of events, it appears the BC provincial government will benefit from the fact that cable providers now must provide cheaper packages. Who’da thunk that it would increase the bottom line of general revenue coffers when the CRTC mandated cheaper cable? Here’s the explanation I received from Shaw as to why the provincial tax is higher for the same service.

Customers in British Columbia are provided a PST tax exemption for Cable TV services. This exemption is based on the minimum level of television service available for purchase; customers are responsible for paying PST for the portion of their bill exceeding this amount. Currently, the minimum level of TV service available from Shaw is priced is $41.00/mo.

As of February 16, 2016, the minimum level of TV service offered to customers in BC is “Limited TV” – the package mandated by the CRTC and priced at $25.00/mo. As this will be the basis of the PST exemption for BC Cable TV customers moving forward, the billed amount of PST on your invoice will increase.

 

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