There will be no cut in the excise tax on diesel such as the one now in effect for gasoline to ease the impact of the harmonized sales tax, introduced on P.E.I. April 1.
The HST added an extra nine per cent in taxes to gasoline and diesel prices. The government tabled legislation on Friday to reduce the excise tax charged on gasoline by 3.1 cents a litre. That change is already being reflected in the pump price, put in place as the HST was introduced.
But the excise tax on diesel will stay the same. Finance Minister Wes Sheridan said businesses won't take a hit on diesel because they'll receive credits for the HST they pay, so there was no need to drop the excise tax.
"It's a cost of doing business," said Sheridan.
"A very large majority of all diesel sales is on the business side of things."
The Opposition said the move by government represents another attack on Island businesses.