BC Conservative Leader John Rustad on Friday announced that his government, if elected, will abolish taxes on tips earned by workers in the hospitality industry, including restaurants, bars, cafes, and salons. Rustad emphasized that service workers are being unfairly taxed on the tips they earn, while being left behind by David Eby’s NDP government.
“Tips are a lifeline for so many workers in BC’s hospitality industry—especially as the cost of living continues to rise,” Rustad said. “It’s unjust that the government is taxing the hard-earned tips of servers, bartenders, and other service industry professionals who are already struggling to get by.”
He noted that under the current laws, tips are subject to taxation, placing an additional burden on workers who rely heavily on them to make ends meet. Rustad criticized the NDP government for continuing to tax service industry workers on what are often unpredictable, variable incomes.
“The government shouldn’t be taking a cut of the tips that service workers rely on to pay rent, buy groceries, and support their families,” said Rustad. “This is an unfair tax, and we’re going to put an end to it.”
The BC Conservative Party’s plan to abolish taxes on tips will provide immediate financial relief to thousands of workers across the province. This move will give workers more control over their income and improve their financial security.
“This is about more than just financial relief,” Rustad said. “It’s about acknowledging the essential role of service workers in our communities and making sure they’re treated with respect by the government.”
Rustad also pointed out the positive ripple effects for the broader economy: “When service workers have more money in their pockets, they spend it in local businesses—restaurants, shops, and community services. It’s a win for everyone.”
Rustad said: “This policy is about taking a sensible, common-sense approach to taxation. By eliminating taxes on tips, we’re helping workers, supporting the local economy, and reducing unnecessary government overreach. It’s time for a government that puts hardworking people first.”
HOWEVER, the NDP fired back, pointing out that Rustad can’t take the tax off tips because tips are included in taxable income according to federal laws.
Brittny Anderson, BC NDP candidate for Kootenay Central, said: “Rustad continues to try and hide from his 20 year record as a BC Liberal cabinet minister. When I worked as a server, John Rustad and the BC Liberals made sure restaurant and bar workers were paid less than the minimum wage and that our bosses were allowed to take a cut of our tips. John Rustad and the BC Liberals also had the lowest minimum wage in the country. Now he expects servers to believe he’s suddenly on their side? Here’s a tip – don’t believe him.”