N.S. political parties take differing views on federal government’s GST holiday

After the recent announcement of a federal GST holiday on certain consumer items, residents of Nova Scotia are eagerly awaiting to see if their new government will follow suit after next week’s provincial election.

Prime Minister Justin Trudeau revealed that the federal government will be eliminating the GST for a two-month period on various items such as prepared foods, restaurant meals, some alcoholic beverages, children’s clothing and toys, and even Christmas trees. However, in Nova Scotia, where the GST makes up five percentage points of the 15 per cent harmonized sales tax, it will ultimately be up to the ruling party to decide whether or not they will remove their portion of the tax on these items.

Liberal Leader Zach Churchill expressed his support for matching the federal government’s GST holiday, stating that Nova Scotians are feeling financial strain. Churchill’s election platform includes a proposal to reduce the HST by two points, bringing it down from 15 to 13 per cent, and permanently eliminating the HST on food purchased in grocery stores.

On the other hand, the Progressive Conservatives and NDP have yet to disclose their plans regarding the GST holiday if they emerge victorious in the upcoming election. The PC campaign has outlined a promise to decrease the HST by one percentage point, whereas the NDP has expressed gratitude for the federal government’s initiative to make things more affordable without confirming if they would replicate the tax break.

Despite the uncertainty surrounding the provincial response to the federal GST holiday, a spokesperson for federal Finance Minister Chrystia Freeland affirmed that the entire HST would be waived from the specified products in Nova Scotia and other provinces with a blended sales tax.

Jim Cormier of the Retail Council of Canada in the Atlantic region welcomed the federal announcement, noting that the tax relief will impact certain retailers more significantly than others. He emphasized the positive effect of the GST holiday on businesses, particularly as the holiday season approaches, encouraging increased consumer spending.

In conclusion, while the outcome of Nova Scotia’s response to the federal GST holiday remains undecided, the initiative has been met with support from various sectors, with hopes of providing relief to consumers and stimulating economic activity in the region.