- Nova Scotia plans to reduce the provincial portion of the Harmonized Sales Tax (HST) from 10% to 9% effective 1 April 2025, lowering the combined HST rate to 14%.
- This would be the first HST rate change since 1 July 2010, when the combined rate increased from 13% to 15%.
- Transitional rules will determine whether the current 15% or new 14% rate applies to transactions around the implementation date.
- The rate reduction is expected to decrease provincial revenues by CA$260.8m in 2025-26, CA$265.5m in 2026-27, and CA$272.4m in 2027-28.
- Speculation exists about an early provincial election, with the opposition leader proposing a two-point HST reduction to 13%.
Sources
- Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
- Global Upcoming VAT Rate changes – Chronological, click HERE
