Reports raise concerns about taxes, waste fees and affordability in BC

Two recent reports warn that rising taxes, fees and debt could increase costs for businesses and households in the province, raising concerns about long-term growth and affordability.

One analysis published in Business in Vancouver (BIV) focuses on the provincial government’s Budget 2026, while the other, published by the Business Council of British Columbia (BCBC), examines rising costs in Metro Vancouver’s waste-management system. Both argue that government policy choices are adding financial pressure for residents and entrepreneurs.

Taken together, the analyses argue that policy decisions at different levels of government are contributing to higher costs for businesses and taxpayers.

The BIV report argues Budget 2026 introduces several tax measures that will affect entrepreneurs and employers, including increases to personal income taxes, a temporary freeze on the indexation of tax brackets and an expansion of the provincial sales tax to certain professional services such as engineering, architecture and accounting.

According to the analysis, the measures are expected to generate about $5 billion in gross additional revenue over three years.

The report argues that higher taxes can increase the cost of hiring and investment by raising compensation expectations for workers and increasing the cost of business inputs.

It also notes that the provincial sales tax differs from harmonized sales tax systems used in some other provinces because businesses cannot claim input tax credits. As a result, taxes on services can accumulate as goods and services move through the production chain.

The analysis also highlights recent changes in business formation in the province. Between 2015 and 2019, British Columbia added roughly 3,000 net new businesses each year. That pattern shifted more recently, with business exits outpacing new entries in 2024 and producing a net loss of more than 3,300 businesses. The trend continued into 2025, with a further net loss of about 2,400 businesses in the first five months of the year.

The report argues those developments are unfolding alongside a deteriorating fiscal outlook.

Budget 2026 projects rising deficits and increasing public debt over the next several years. The council’s analysis says taxpayer-supported debt could approach $33,000 per resident by 2029, up sharply from about $12,000 in 2021.

The second BCBC analysis examines the costs associated with solid waste management in Metro Vancouver.

According to the report, inflation-adjusted spending on the region’s solid waste program increased by nearly 50 percent between 2005 and 2024, rising from about $108 million to roughly $158 million. Population growth during the same period was about 43 percent.

The analysis says disposal fees have also increased substantially. General per-tonne fees rose from about $60 in 2006 to roughly $150 by 2025, while tipping fees have more than doubled.

The report argues that those increases have occurred without significant changes in waste diversion rates or other environmental outcomes.

Metro Vancouver oversees regional waste planning and disposal, while municipalities typically manage residential collection and private companies handle commercial and industrial waste.

The report says the region historically relied on a mixed public-private model that allowed haulers to choose among several disposal facilities. According to the analysis, changes in licensing requirements, reporting rules and fee structures over the past decade have centralized more control within the regional authority.

The report argues that Metro Vancouver now plays several roles in the waste system, including policy maker, regulator and operator.

It also highlights rising debt tied to waste infrastructure projects. Debt-servicing costs for the program were about $1 million in 2018, rising to roughly $17 million in 2025 and projected to reach about $40 million by 2029, according to the report.

The analysis cites a 2019 warning from Canada’s Competition Bureau that policies restricting competition in regional waste systems could reduce choice and increase costs if not clearly justified.

The analysis says stronger oversight and competition could help control long-term costs while maintaining environmental standards.

Both reports argue that government cost pressures and fiscal decisions will affect affordability and the province’s broader economic outlook.

They say policies aimed at environmental protection and public services must also consider affordability and long-term fiscal sustainability as governments plan for population growth and future investment needs.