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BC Government Wrote Off $340 Million in MSP Tax Debt

Author: Jordan Bateman 2016/04/11

VANCOUVER, B.C.: The BC government has written off more than $340 million in Medical Services Premium (MSP) tax debt over the past six years, according to a document obtained by the Canadian Taxpayers Federation (CTF) through a Freedom of Information Act (FOI) request.

While the government can still legally try and get the money, writing it off is an admission that they are unlikely to ever recoup it, noted Jordan Bateman, CTF BC Director.

“These stats again prove that MSP taxes are unfair and inefficient and that many British Columbians are struggling under the burden of constant tax hikes,” said Bateman.

The document breaks down, by year, how much MSP tax was written off by government:

  • 2015 - $40.6 million
  • 2014 - $54.9 million
  • 2013 - $157.5 million
  • 2012 - $27.9 million
  • 2011 - $16.3 million
  • 2010 - $43.1 million

In its 2016-17 provincial budget, the BC Government again hiked MSP taxes, which have gone up nearly 40 per cent over the past five years. Documents obtained by the CTF through a previous FOI request showed more than 850,000 MSP tax payments were at least 31 days past due.

“Even Premier Christy Clark admits the MSP is unfair and illogical, antiquated and nonsensical,” said Bateman. “She has the power to change it – and make life a lot more affordable for hundreds of thousands of BC taxpayers. She should get on with it.”

The full document can be seen HERE.


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