News Release Archive
NEWS RELEASE (CNS886) -->> FINANCE--TAX HARMONIZATION LEGISLATION - THE SALES TAX ACT FINANCE--TAX HARMONIZATION LEGISLATION - THE SALES TAX ACT ----------------------------------------------------------------- The government of Nova Scotia has introduced legislation authorizing the harmonization of the Goods and Services Tax (GST) and the Provincial Sales Tax (PST). The new Sales Tax Act ratifies the agreement between the province and the federal government that sets up the Harmonized Sales Tax (HST). The legislation also allows the province to create rules on tax included pricing. These rules will make sure consumers know the final price of an item or service before they make the purchase decision. Finance Minister Bill Gillis said, "Consumers have consistently shown a strong preference for this policy. The latest public opinion poll shows support on the rise throughout Atlantic Canada with 76 per cent of those asked wanting taxes to be included in the price and disclosed at the cash." Dr. Gillis said, "We want to create a balance between the interests of consumers and those of business. We are still seeking the views of people on how to best implement tax included pricing." As an example, the governments involved are looking at requirements for repricing items on a shelf or on racks such as magazines, newspapers and greeting cards. The new sales tax is also moving through the legislative process in the Parliament of Canada and the legislature of Newfoundland. In Ottawa, the federal bill received first reading yesterday and it is anticipated that second reading will begin today. In Newfoundland, that province's version of the bill also received first reading yesterday. The New Brunswick government is committed to introducing the legislation shortly after Dec. 10. The HST will be applied at a lower rate than the combined GST and PST, but on a broader base. Everyday items such as household cleaning products, hardware supplies, telephone and cable television bills, and prepared food will go down in price, as will long lasting items such televisions, appliances, furniture and automobiles. Going up will be items such as gasoline, heating fuels and electricity. Goods and services not taxed by the GST such as basic groceries, residential rents, mortgage interest, day care and medically necessary home care will remain untaxed by the HST. The legislature has already passed income tax cuts to help smooth the transition to the new tax system. The HST is scheduled to go into effect on April 1, 1997. -30- Contact: Bruce Cameron 902-424-8787 trp Dec. 03, 1996 - 1:25 p.m.