The Canadian Taxpayers Federation is calling on Premier Tony Wakeham to scrap the provincial sales tax on home heating after New Democrat member of the house of assembly Sheilagh O’Leary recently called for the change.
“The fastest way for the government to make life more affordable is to make things cost less,” said Devin Drover, Atlantic Director and General Counsel for the Canadian Taxpayers Federation. “When a family turns up the thermostat in January, the government takes a cut. That’s a tax on people just trying to keep their kids warm through the winter.
“Knocking the provincial tax off home heating will deliver relief right away.”
O’Leary called for the change in local media last week. “To remove the HST from the cost of heating would really give people a break,” she said.
The government of neighbouring Nova Scotia automatically rebates the provincial portion of the HST on residential electricity and home heating. This saves the average Nova Scotia household with electric heat an average of $300 annually.
The Newfoundland and Labrador government charges a 10 per cent provincial sales tax on every electricity and home heating bill, the highest in Canada.
“Nova Scotians don’t pay provincial sales tax to heat their homes and neither should Newfoundlanders and Labradorians,” Drover said. “Wakeham should take the tax off home heating and give families a break they’ll feel every single month.”
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