Chambers concerned about possible HST increase
by Corey LeBlanc coreyleblanc@thecasket.ca


      An increase in the harmonized sales tax (HST) is not the cure for what ails the provincial economy according to the Nova Scotia Chambers of Commerce.
      “We feel the same way. It is not the course of action we need to take,” Antigonish Chamber of Commerce president said of the provincial group’s position.
      In a March 12 press release, Nova Scotia Chambers of Commerce president Tom McInnis urged the NDP government to look “inward as it attempts to find ways to cut costs and bring our province back to balance. He added the provincial group is convinced that an increase in the HST will only hurt “our competitiveness and remove money from circulation.”
      “All other options, such as cost reduction, must be fully implemented before raising taxes.
      “It is incumbent on government to do more with less and to utilize the resources it has in order to grow our economy,” McInnis said.
      Hughes said much of the talk of an HST increase came from NDP finance minister Graham Steele’s Back to Balance tour earlier this year. During those stops, including one in Antigonish, Hughes said people were receptive to such an increase because it was presented as the only alternative.
      “Basically, it is the easy way out for them,” Hughes said.
      “I don’t think they have genuinely looked at any alternatives,” he added.
      One region the Nova Scotia Chambers of Commerce has focussed on in expressing concern about a possible HST increase is Cumberland County. The group said many businesses in that area are struggling with cross-border shopping due to lower taxes in New Brunswick.
      “An increase in the HST will only further reduce their competitiveness.
      “We can’t sit back and allow this to happen. Increasing the HST by two percentage points will spell the end for many businesses in the Amherst and surrounding area,” McInnis said.
      Although it is not a business, McInnis said the province needs to be run in a more “business-like” fashion.
      “We must reduce redundancy and ineffectiveness within government itself if we truly want to turn our current financial situation around,” McInnis said.
      “We are already paying more taxes than residents of most other provinces in Canada. Let’s not make that situation worse.”
      Hughes described one rumour – an HST increase of four percent – as “crazy.”
      “It should be a last resort,” Hughes said of any HST increase.