Canada Newfoundland ditches HST rate rise

Sat 12th Dec 2015

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.