PEI’s harmonization: The good and the bad
CRFA’s Luc Erjavec (standing, right) discussed PEI’s harmonization at a July 25, 2012 public forum with Finance Minister Wes Sheridan (standing, left) in Charlottetown.
(Aug. 14/12) In late July, CRFA participated in a public forum on the introduction of the HST on PEI. CRFA has lobbied for harmonization in this province because:
- the combined sales tax on restaurant meals drops from 15.5 to 14 per cent; and
- operators will be eligible for full input tax credits on the HST paid.
During the forum with Finance Minister Wes Sheridan, CRFA supported harmonization but raised several concerns – namely, the retroactive elimination of the $500 processor rebate that operators receive as compensation for collecting the current PST, and treatment of beverage alcohol under the new regime. Currently, alcohol is PST-exempt for licensees and retail pricing includes taxes. Officials have asked to meet with CRFA to discuss beverage alcohol pricing.