New Brunsick’s provincial government has pledged to cut the Harmonized Sales Tax by two percent if re-elected.
While the next provincial election hasn’t officially been called yet, Premier Blaine Higgs wants to get the message out before his party begins campaigning.
Higgs made the announcement during a press conference in Moncton on Thursday.
“New Brunswickers know better than government how to spend their own money,” said Higgs. “With the cut to the HST, they’ll have more money to work with.”
The premier said his government could make the cut possible as a result of “strong, smart policies and disciplined fiscal management have resulted in six consecutive balanced budgets.”
Once implemented, New Brunswick will have the lowest HST of all the Atlantic provinces and Quebec.
“We’re able to do this because we can and because we’ve been fiscally responsible since we started, since the very beginning,” said Higgs. “All the while, we’ll maintain our balanced budget.”
According to Higgs’ plan, HST will be reduced to 14% as part of the 2025 budget, then again to 13% in 2026.
The federal-provincial tax was created in the late 1990s and was originally implemented at 15%, with a federal rate of 7% and a provincial rate of 8%.
Reducing New Brunswick’s HST down to 13% would bring it on par with Ontario.
“This announcement is tremendous news for hardworking families all across New Brunswick,” federal director of the Canadian Taxpayers Federation told True North.
“This HST cut will save families big time nearly everywhere they shop and save the average family nearly $1,000 a year once this tax cut is fully phased in.”
Higgs’ Minister of Public Safety Kris Austin made the same announcement while speaking with reporters in Fredericton, saying that the cuts will save New Brunswickers around $1,000 annually.
“Whether families are struggling to afford a summer vacation, replace that old appliance or looking to buy a new car, this HST cut will have a huge impact on the lives of New Brunswickers,” said Terrazzano.
Former prime minister Stephen Harper reduced the federal portion of HST down to 5% in 2006.
However, New Brunswick’s former Liberal premier Brian Gallant increased the provincial portion to 10% in 2016, bringing the province’s total rate back up to 15%.
Higgs said that for the first time in a generation, the province’s youth and young adults were “not only staying in our province, but returning home for the opportunities we have right here.”
“New Brunswickers can’t afford more expensive Liberal policies and debt-fueled spending,” said Higgs.
Voters will be headed to the polls no later than Oct. 21.