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NLIS 2
June 30, 2006
(Finance)
 

HST reduction to take effect July 1, 2006  

Effective tomorrow (July 1), the Harmonized Sales Tax (HST) in the province of Newfoundland and Labrador will be reduced from 15 per cent to 14 per cent as a result of the federal government�s direction to reduce the GST portion from seven per cent to six.

 

�This represents one per cent of most goods and services we pay for in our province going directly back into consumers� pockets,� said Finance Minister Loyola Sullivan.  �While government will not benefit directly from the reduction, we welcome it as the residents of the province will have more money to spend and that is always good news.�

 

The Province of Newfoundland and Labrador also imposes a 15 per cent sales tax on insurance premiums and the resale of used cars.  This is not HST or GST and, as such, is not subject to the federal reduction.

 

However, Minister Sullivan adds that these services and others are part of a broader tax and fees review currently underway in government.

 

�This year we focused on tackling our aging infrastructure, boosting education and reducing poverty among many other things,� said Minister Sullivan.  �But we are still committed to reducing taxes for Newfoundlanders and Labradorians and will study each and every tax charged in this province and consider its impact and necessity.�

 

For more information on the federal government�s reduction in the HST/GST Tax rate, please visit www.cra.gc.ca/agency/budget/2006/gstrateqa-e.html or call 1-866-959-7797.

 

Media contact: Deborah Pennell, Communications, (709) 729-6830, 685-6612, deborahpennell@gov.nl.ca

 

2006 06 30                                                      9:15 a.m.        


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