Finance
May 3, 2016

The following statement was given today in the House of Assembly by the Honourable Cathy Bennett, Minister of Finance:

Transitional Rules for HST Rate Increase Released

Mr. Speaker, today the Provincial Government has released the transitional rules for the HST rate increase in Newfoundland and Labrador. Our government knows that this has been a difficult budget for people, but the magnitude of a $1.8 billion deficit leaves this province in a very serious financial situation and this figure could have been much larger if not for our decisive actions.

Announcing transitional rules as early as possible helps to reduce the level of uncertainty for businesses and consumers and allows businesses sufficient lead time to implement the system changes necessary to implement these rules. The details of the HST transitional rules can be found on the Department of Finance web site.

Mr. Speaker, transitional rules are required to determine which tax rate would apply in respect of transactions that straddle the July 1 implementation date. Under these transitional rules, suppliers are generally required to charge the HST at the new rate of 15 per cent on any purchase or consideration that becomes due without having been paid, or is paid without having been received, on or after July 1, 2016 for supplies of taxable property or services. Specific transitional rules will apply to certain real property transactions.

Mr. Speaker, we have to make the right choices. While these choices are not easy ones, they are necessary to put our province back on track.

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2016 05 03                              2:00 p.m.