Tax & Accounting Blog

New Brunswick: Possible Referendum to Increase HST

Indirect Tax, ONESOURCE, Transaction Tax, VAT Tax Rates February 5, 2013

ExcelFollowing a recent announcement that the government won’t be able to meet a promise to balance the provincial budget by next year, Premier David Alward has publicly stated that a referendum to increase the HST is possible before the next election in 2014.   The current rate of HST in the province is 13%. It has not been announced yet how much of an increase is being considered. Other possible measures are being considered to offset the deficit, which is expected to hit $356 million this year, including imposing highway tolls. The province’s Taxpayer Protection Act requires a referendum before the government can carry out either of these proposals.