HST Hike Stifles Growth: Taxpayer Federation
FREDERICTON –New Brunswick’s HST hike is bad for business according to a representative from the Canadian Taxpayers Federation (CTF).
As part of the provincial budget announced on Tuesday, the government revealed the HST is increasing to 15 per, with the provincial component now representing 10 per cent. The hike is expected to generate about $300 million in new revenue for the province, although the tax credits planned for low-income New Brunswickers would erase $100 million of that.
This will mean New Brunswick will have one of the highest sales taxes in Canada. The Canadian Taxpayer Federation’s Atlantic Director Kevin Lacy argues that the increase will stifle economic growth.
“The government decided to try and correct years of mismanagement by massively hiking taxes on average working New Brunswickers,” Lacy said. “Raising the HST to the highest level in Canada eliminates New Brunswick’s competitive advantage compared to the other Maritime provinces, and it sends the signal to investors that the province is closed for business.”
Fredericton Chamber of Commerce CEO Krista Ross said the HST increase will impact New Brunswick businesses’ ability to deliver their services.
“It impacts the price of every good that our business community is selling. It makes it challenging whether it be restaurants or retailers,” Ross said.
“Everything they sell becomes a little bit more expensive and it makes it more challenging for them to be able to keep their sales at the level that they need to.”
The government also announced on Tuesday the corporate tax in the province will go up to 14 per cent, also one of the highest in Canada. Lacey said the increase is counterproductive .
“These tax increases are going to put the breaks on a struggling New Brunswick economy at a time when the province needs to create jobs and create opportunities.”