Prince Edward Island Premier Dennis King says the federal government’s two-month sales tax pause could cost the province roughly $14 million due to the loss of its provincial portion of the harmonized sales tax.
Prime Minister Justin Trudeau announced Thursday that the GST (goods and services tax) and HST will be temporarily removed from Dec. 14 to Feb. 15 on goods such as children’s clothes, diapers and toys; restaurant meals; and some types of prepared foods not previously exempted.
The government will also send $250 cheques to 18.7 million Canadians who worked in 2023 and made less than $150,000, with Trudeau saying it will help alleviate today’s higher cost of living.
Prince Edward Island is one of five provinces with an HST, and the federal tax pause means that the provincial portion of the tax won’t be collected either.
During Friday’s sitting of the provincial legislature, King said there is no agreement on whether the federal government will reimburse the province for the $14-million loss. He said his government will negotiate to see what could be done about the missing revenue.
