Yarn and other materials used to make or mend clothing will no longer be exempt from provincial sales tax in British Columbia as of Oct. 1, a move that the owner of a Kelowna business says unfairly affects people who are looking for a more mindful approach to fashion.
The B.C. government’s 2026 budget says goods and services that were once deemed essential but are no longer commonly used will be subject to the PST. That includes “clothing patterns, yarn, natural fibres, synthetic thread, and fabric that are commonly used in making or repairing clothing.”
The exemption for services related to clothing and footwear will also be eliminated, but basic laundry services will remain exempt.
Cheryl Brown, owner of Kelowna Yarn & Needlecrafts, says applying PST to such materials will negatively her clientele, who take a more DIY approach to making and maintaining clothes.
“They don’t want to go to a store and buy a fast-fashion piece for $40,” Brown said of her clientele. “They’re OK coming into the store and spending $70 or more to buy the product to make themselves a sweater, or a sweater for someone, that’s going to last for years.”
She said the addition of the seven-per-cent tax will affect customers on fixed incomes who have already had to contend with the rising cost of yarn.
“They’ll be making choices because the economy is tough right now,” she said.
In a statement, a spokesperson for the Ministry of Finance said it is expanding the PST base “to help diversify revenue sources so we can prevent cuts to services like health care and education.”
The statement went on to say the tax update brings B.C. in line with the application of PST in other provinces.
Brown wrote her Master’s thesis at the University of British Columbia Okanagan on the health impacts of activities such as knitting, saying it can reduce stress and offer cognitive benefits.
She says she has yet to see customers stock up on materials, saying most seem unaware of the change.
She is concerned for her business and others like it, saying they provide a place for social connection.
“We provide community for people. We know our customers by their first name. We know what’s going on in their lives,” Brown said.
“I find it kind of ironic that right now governments are providing grants … to build community and to decrease social isolation, which we know impact people’s well-being and yet it feels almost like they’re punishing people who try to find that community by buying products and being a part of our community.”
