HST takes a hike in Nova Scotia

(Apr. 29/10) Despite opposition from CRFA and the business community, Nova Scotia takes aim at its large deficit by raising the harmonized sales tax (HST) from 13 to 15 per cent effective July 1, 2010.  

The provincial budget also included the introduction of a new tax bracket for high-income earners and a minor reduction in the Small Business Corporate tax rate from 5 to 4.5 per cent.

The HST increase is especially problematic for restaurateurs, because it lowers consumers’ disposable income and exacerbates the unequal tax treatment of food in restaurants versus grocery stores.  

CRFA has also pointed out that high levels of personal and corporate taxes discourage investment and economic growth.