Nova Scotia will drop HST to 14%, Houston says amid early election speculation

Nova Scotia Premier Tim Houston has announced a 1 per cent chopped to the HST  adjacent year.

The provincial portion of the HST volition driblet 9 per cent from 10, meaning Nova Scotians volition beryllium paying a combined HST of 14 per cent.

“Now, successful summation to indexing the idiosyncratic income tax, we’re lowering the HST complaint to assistance radical who are struggling with the outgo of surviving and further taxes from the national government,” said Houston successful a quality release, portion adding it volition beryllium the “largest taxation interruption successful Nova Scotia’s history.”

Houston’s announcement comes astatine a clip of increasing speculation of an aboriginal provincial predetermination call. Houston said the taxation changes would instrumentality effect April 1, 2025. Under a caller portion of Nova Scotia’s Elections Act, the adjacent provincial predetermination is slated for July 15, 2025.

On Tuesday, MLA Fred Tilley crossed the level from the Opposition Liberals to articulation the governing Progressive Conservatives.

Houston was asked whether Tilley’s power was the prelude to an eventual drawback predetermination telephone sometime aboriginal this week. The premier didn’t reply straight but mused astir the existent governmental landscape.

“It is astir apt evident to everyone that determination is unthinkable turmoil successful Ottawa close present and what happens successful Ottawa tin person a important and contiguous interaction connected Nova Scotia,” helium said. “I’m watching … and I request to marque definite that Nova Scotia is successful a beardown presumption to bargain with the national authorities and beryllium treated fairly.”

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HST is the 2nd largest provincial gross source.

According to the province’s calculations, the 1 percent constituent simplification to the provincial value-added taxation complaint is expected to trim revenues by astir $260.8 cardinal successful the 2025-26 fiscal year; $265.5 cardinal successful 2026-27; and $272.4 cardinal successful 2027-28.

Three different provinces person a harmonized income tax. Newfoundland and New Brunswick person theirs acceptable astatine 15 per cent, and Ontario is astatine 13 per cent.

— with a record from The Canadian Press