Canada Newfoundland ditches HST rate rise
- 11 December 2015 | Richard Asquith
The Canadian Province of Newfoundland has confirmed that it will now not raise its Harmonised Sales Tax (HST) rate from 13% to 15% on 1 January 2016.
The change in the consumption tax rise plan was announced by the new Liberal Premier, Dwight Ball. It was a manifesto promise for the Liberal party.
HST is a combination of Canadian Goods & Services Tax (GST) and Provincial Sales Tax (PST). GST is 5%, and the provinces are free to set their PST rates. Five states apply HST: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island. The rates, including GST, are between 13% and 15%.
The remaining provinces have GST and PST calculated and reported separately by sellers.