Nova Scotia Finance Minister Graham Steele says he's not ready to increase the sales tax, despite a recommendation from economic advisers to hike the HST by two per cent.

Nova Scotia, New Brunswick and Newfoundland and Labrador have HST agreements with the federal government. Under the current rules, a province that wants to change the tax rate must have the approval of one of the other provinces.

But those rules are in the process of changing because Ontario and British Columbia are working on their own HST deals. Whatever changes they negotiate can be applied to the original HST agreements.

Steele said it's unclear what it will take for Nova Scotia to increase the tax rate as suggested.

"If it happens at all, it could be this budget. It could be the following budget. It could be some variation on what the panel has recommended. That's the purpose of the consultation process, which is to say if we need more revenue, how are we going to do it," he said Thursday.

Last week, a government-appointed panel said one of the ways Nova Scotia could deal with its dire economic state was by hiking the HST by two percentage points.

Steele said taxes will be a main topic in the new year when the government holds public consultations on the state of the province's finances.