It’s another sign an election call could be days away.
Premier Tim Houston is set to cut the harmonized sales tax (HST) by one-percent.
It’s not immediately clear how much it will add to your bottom line over a month or year, but the HST is the second largest provincial revenue source behind personal income tax, accounting for about $2.7 billion and 17.1 per cent of total revenues.
The cut will come into effect on April 1.
“We’re always looking for ways to provide relief to Nova Scotians. Now, in addition to indexing the personal income tax, we’re lowering the HST rate to help people who are struggling with the cost of living and additional taxes from the federal government,” said Houston. “This will be the largest tax break in Nova Scotia’s history. It’s the first time in 14 years that a provincial government in Nova Scotia has made changes to the sales tax. And this time it will be a decrease.”
The HST is added to your bill total every time you tap your card to pay for every day items from stores, restaurants and businesses.
The new combined sales tax rate in Nova Scotia will be 14 per cent. Newfoundland and Labrador, New Brunswick, Prince Edward Island and Ontario also have a harmonized sales tax.
“Finding solutions that make life easier for Nova Scotians has always been a focus for this government. We’ve been taking a balanced approach to managing the budget and offering solutions that will make a difference for as many Nova Scotians as possible.” said Allan MacMaster, Minister of Finance and Treasury Board.
Meantime, beginning in the new year, the province will index personal income tax brackets and credits which is expected to save Nova Scotians more than $160 million in taxes annually by 2028.
It comes as Houston and his government made a series of pre-election style announcements such as extending the contract of the Nova Scotia-Maine ferry service and committing to a major infrastructure project at the Port Hastings rotary.
The government also committed to cover the tuition for those seeking a career as a licensed practical nurse (LPN) in continuing care through a new pilot program.
Tax cut ‘won’t make big difference’
NDP leader Claudia Chender criticized the premier for announcing the tax cut amid rumours he may call an election.
She said Houston is using all of his political tricks to be in the best position if he does call the election.
Although many are struggling with the rising cost of living, she said this tax cut is not the answer.
“It’s hard to see how this is going to make a big difference. And the reality is, one per cent off the HST is going to benefit people who buy big, expensive things, but it’s not going to make a big difference to the people who really need it,” she said.
