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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%.


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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.


Steve Payne

Steve Payne

Steve Payne is the editor of Canadian Contractor magazine
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1 Comment » for Newfoundland contractors and the province’s HST hike
  1. Todd Collins says:

    My issue is with the fact that I have a sizeable project that was mid-stream when the new HST came into effect. The contract was signed based on 13%HST before the provincial budget was announced. It’s not like I could purchase all my material or pay my subcontractors in advance before July 1st. So now I have to find an extra couple thousand dollars in my budget to cover the cost of the extra 2%PST. But I’m pretty confident that that’s about the least of our ill elected Liberal Government’s concerns. A political party that I did not vote for, might I add. And any new quotes I submit, customers are asking why things are so expensive. I politely suggest they call their local MHA and ask them.