Ottawa economy could take a hit from harmonized sales tax

December 1, 2009

At the pumps

Filling up at the pumps in Ontario could cost you a little bit more under the proposed HST legislation. Photo: Paul Moore

By Paul Moore

 

 

The federal Liberal party has announced it will support the Conservative government’s controversial bill allowing Ontario and B.C. to merge their sales taxes with the federal GST.

After a caucus meeting Tuesday, Liberal leader Michael Ignatieff told reporters on Parliament Hill that the party vote in favour of the bill, which will create “harmonized” sales taxes (HST) in the two provinces.

“This is a request from the provinces because they believe it will improve the competitiveness of their economy and create jobs,” Ignatieff said. “We will support this legislation in Parliament.”

Ignatieff’s announcement means the bill will almost certainly pass in the House of Commons.

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