Newfoundland contractors and the province’s HST hike
Newfoundland's Liberals hiked the Provincial Sales Tax from 8% to 10% effective July 1, bringing the HST to 15%.
August 7, 2016 by Steve Payne
Renovators and home builders in Newfoundland and Labrador are now six weeks into the province’s new HST regime.
The provincial Liberal government hiked the HST from 13% to 15% on July 1st. They did it honestly, at least – they had campaigned on the issue when they were elected last November. They have now hiked the PST portion of the province’s HST from 8% to 10%. The federal GST of 5% remains unchanged.
The province’s home builders have been less than delighted, noting that the new HST rate would add $6,000 to a $300,000 new home purchase. Also, “transitional rules” to ease the impact on consumers were (and remain) poorly understood. The Newfoundland and Labrador chapter of the Canadian Home Builders’ Association spoke to the CBC about the harm that the new tax would do to the industry here (article from April, before the tax hike came into effect).
We invite Newfoundland and Labrador contractors to post comments, below, on the impact they have seen on their businesses so far.
Contractors in other provinces, don’t feel sorry for your colleagues on The Rock. Your turn is coming. Without a doubt.