The following statement was issued today by Ernest McLean, Minister of Responsible for Labrador, on behalf of Paul Dicks, Minister of Finance. It was also read in the House of Assembly:

Provincial Harmonized Sales Tax (HST) Rebate for Housing in Labrador

On behalf of my colleague, the Honourable Paul Dicks, Minister of Finance and Treasury Board, I wish to make the following statement:

The introduction of the HST on April 1, 1997 will result in the elimination of the Retail Sales Tax exemption currently provided for building materials purchased for housing in Labrador. In order to reduce the impact of the exemption removal, it was announced in the 1997 Budget Speech, that the province will be providing a rebate of the provincial portion of the HST (eight per cent) paid on building materials purchased for the construction, repair or improvement of residences in Labrador.

The province will administer the rebate and make payments to taxpayers, for claims totalling at least $25 of the provincial portion of the HST (eight per cent) paid, upon application to the Department of Finance, supported by receipts.

For the purchase of building materials only, it will be a simple matter of the taxpayer filing a rebate claim, accompanied by receipts, with the Department of Finance.

For the purchase of a new home or for renovations the rebate will be based on the building material content of the contract.

Building materials used to construct a residence will qualify for the rebate, but furniture and appliances will be excluded. The Department of Finance will be providing rebate information throughout Labrador early in April.

We are pleased to offer this rebate to the residents of Labrador and anticipate that approximately $1 million in benefits per annum will result from the rebate program.