Calgary

The Strategists talk provincial sales tax as election issue

Some people in Alberta wear it as a badge of pride. We don’t have a provincial sales tax (PST). But is it time we joined other provinces and could this become a key issue in the Alberta election of 2019?

Political panel says it's sound economic policy, but how can it be introduced successfully, if at all?

Provincial sales tax in Alberta?

9 years ago
Duration 8:27
The Strategists wonder if a PST could become an issue in the next Alberta election

Some people in Alberta wear it as a badge of pride.

We don't have a provincial sales tax (PST).

But is it time we joined other provinces and could this become a key issue in the Alberta election of 2019?

Political strategist Stephen Carter says, the issue cannot come out of left field. It has to be carefully introduced.

"If you were to bring in a PST without having campaigned on it, you are done," Carter said.

"Even increasing the PST without campaigning on it … seems to be pretty much fatal."

Carter said it would have to be talked about during an election campaign despite being sound economic policy.

"There is not an economist in Alberta that doesn't think a PST is required and good policy."

Finance Minister Joe Ceci raised the issue this week while speaking with a New York audience of bankers, traders and economists.

Corey Hogan said the NDP government had specific goals with Ceci's speech.

"I think they are doing three things. One is, they are laying the groundwork in case they decide to do that. Second, is a classic trial balloon, they are putting it out there to see what the reaction is," Hogan said.

"And then the third is, they are sending a very clear signal to everybody that the PST will not be coming in this term so everybody calm down but we do have a way to potentially get out of this deficit hole in the future."

Zain Velji said it's time for clarity.

"You can't have a conversation in perpetuity. This conversation needs to lead to something decisive and my fear, for them, is that they will continue this conversation until the election without actually figuring out if they want to do this or if they do not want to do this," Velji said.

"Their climate change roll out? Brilliant. Their royalty rollout? Not so much. One was decisive, the other one was not. They have to be decisive leading up to the election as it relates to the PST."

With files from CBC News Calgary