February 16th, 2010
I don’t typically like the “doom and gloom” style of reporting. ¬†After all, too much gloom tends to grow on a person, right?
However, here is a gloomy scenario that could play out in Nova Scotia. ¬†First, a quick refresher. ¬†In 2006 the HST rate in Nova Scotia dropped from 15% to 14%, and then dropped again in 2008 down to 13%. ¬†These rate cuts happened after the federal government cut their federal portion of the HST. ¬†Few people complained.
Now, however, both Nova Scotia and the federal Canadian government are severely in the red. ¬†The provincial NDP government has as good as said that they are going to raise the HST rate. ¬†On February 1, 2010 NDP Finance Minister Steele stated that: ¬†“Over the six public sessions we‚Äôve had, I would say people can accept that part of the solution is an increase in taxes, particularly the HST.” Face it, whenever a Finance Minister says something like that, we can expect a tax increase!
Over in the federal camp, the Conservatives are dead set against raising taxes. ¬†But the official opposition, the Liberals, are mumbling about increasing the GST/HST back up to what it used to be. ¬†Fortunately the odds are against it, but there’s obviously potential for both the provincial and the federal governments to increase our HST by a couple of percentage points.
The bottom line is that we may as well expect to be back up to 15% in the next year or two, and let’s hope it doesn’t go past that! ¬†It’s going to be interesting to watch, at the least.Filed under: Business tax, Consumer Tax by David Boese 2 Comments »