Framework agreement signed for PEI’s Harmonized Sales Tax
July 5, 2012
EXCLUSIVE NEWSLETTER CONTENT A Memorandum of Agreement (MOA) regarding the implementation of the Harmonized Sales Tax (HST) in Prince Edward Island was recently signed with the Government of Canada. The MOA provides exemptions for home heating oil, and a rebate program is being developed for low and modest income Islanders. It provides the framework for the Canada-PEI Comprehensive Integrated Tax Co-ordination Agreement (CITCA). The CITCA will detail the conditions of implementing the HST in Prince Edward Island, including how the province will transition from a dual GST/PST tax system to an integrated HST. Negotiations with the federal government to conclude the CITCA will happen over the next few months. To ensure that Islanders are well informed and have an opportunity to ask questions, the Minister is meeting with business groups, industry associations and the community as a whole. The meetings began on June 20 and will run weekly until the end of August.