Nfld. & Labrador

HST rate increase officially cancelled

The proposed increase that would see the provincial HST hike to 15 per cent has been officially cancelled.
Premier Dwight Ball said HST was on the agenda when he met with Prime Minister Justin Trudeau in Ottawa Dec. 9. (Adrian Wyld/The Canadian Press)

The proposed increase to Newfoundland and Labrador's HST rate has officially been cancelled.

In April, the Progressive Conservatives announced the plan to increase the tax rate to 15 per cent as of Jan. 1.

However, the Canada Revenue Agency issued a statement Tuesday referring businesses to a provincial notice dated Dec. 14 that confirmed the rate would stay the same in the new year.

The provincial branch of the Canadian Federation of Independent Business (CFIB) said Monday it was looking for more clarity about what to tell business owners about the HST.

After the Liberals won the Nov. 30 provincial election, Premier Dwight Ball wrote to the federal finance minister notifying Ottawa that he planned to reverse the increase.

Ball met with Prime Minister Justin Trudeau last week, who did not specify whether or not there was time to cancel the increase before the end of the month.

But the federal Finance Department sent out a statement ensuring it would take the necessary steps to keep the rate at 13 per cent.

The Tories had included the two-point increase in their 2015 budget and the legislation had already been passed.


To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

Become a CBC Member

Join the conversation  Create account

Already have an account?