HST creates double blow at gas pumps, says opposition
Switching to flat gas tax would mean cuts to education, health care Premier Ghiz responds
One of the first things the Robert Ghiz Liberals did after they came to power in 2007 was lower the tax on gasoline and switch to a flat tax that remained the same no matter what the price.
But that changed when the HST came into effect a year ago.
"What I would suggest is a cap. What the Premier of Nova Scotia is saying is take the nine per cent off completely. And I mean, I'm not opposed to that either because I do think that Islanders deserve to have some sort of a break. It's getting so costly to live here."
Premier Robert Ghiz says if the province were to switch back to a flat tax on fuel, then it would have to cut expenditures on services like education and health care to compensate.
He says he'd reduce the HST on gas if the federal government would compensate the province.
For mobile device users: How should the HST on gas be handled?