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September 29, 1997
(Finance)

Harmonized Sales Tax Credit to be issued in December

In the 1997 Budget, government announced a new low income HST credit for qualifying Newfoundlanders and Labradorians of $40 per adult and $60 per child, to be paid in addition to the existing federal GST credit. Finance Minister Paul Dicks announced today that the 1997 sales tax credit will be issued in December.

"Government had hoped to issue the HST credit in October in conjunction with GST credit cheques. However, as the necessary legislative amendments could not be enacted in time to meet this schedule, the cheques will be delayed. We expect timely passage of the legislation by the House of Assembly and to have the cheques issued in time for the Christmas season," said Mr. Dicks.

The HST credit will be $200 for a family of two adults and two children with net family income of less than $15,000. The provincial credit will be phased out at a rate of 5 per cent of annual net family income in excess of $15,000. The income test is based upon the previous year's income tax return.

The HST Credit program will result in a payment of $7.6 million to low income families. "This money will directly benefit those who need it most, especially the working poor and those receiving social assistance," said the minister.

Revenue Canada will administer the HST credit and issue cheques on behalf of the provincial government.

Contact:
Karen McCarthy, Director of Communications, (709) 729-0110