N.S. political parties take differing views on federal government's GST holiday

With the announcement of a federal GST holiday on some consumer items, people in Nova Scotia will have to wait until after next week's provincial election to know if their new government will match it.

Prime Minister Justin Trudeau announced on Thursday that his government will remove the GST for two months on items that include prepared foods, restaurant meals, sacks, some alcoholic beverages, children's clothing and toys, and Christmas trees.

But in Nova Scotia, where the GST accounts for five percentage points of the 15 per cent harmonized sales tax, it will depend on the party in power to decide whether to remove its share of the tax from those items.

"Nova Scotians are feeling the squeeze, which is why we would match the federal government's GST holiday," Liberal Leader Zach Churchill said in a statement.

Churchill's election platform includes reducing the HST by two points, from 15 to 13 per cent, and permanently removing the HST from food purchased in grocery stores.

The Progressive Conservatives and NDP campaigns wouldn't say what they would do if they win on Tuesday.

"We have to understand how it works," PC spokesperson Catherine Klimek said in a statement.

"The federal government hasn't consulted with us yet. We need the details."

The PC platform includes a promise to reduce the HST by one percentage point, from 15 to 14 per cent.

The NDP campaign issued a statement saying it was glad the federal government is doing something to make things more affordable, but would not say if they would match the tax break if they were to form government after Tuesday's election.

The party's election platform includes promises to remove the HST from grocery items still subject to the tax, cellphone and internet bills, and the purchase and installation of heat pumps.

But PC Leader Tim Houston and NDP Leader Claudia Chender might not have much of a choice. A spokesperson for federal Finance Minister Chrystia Freeland told CBC that all the HST would be removed from the products in question in Nova Scotia and the other provinces that have a blended sales tax.

'We would always welcome tax relief'

Jim Cormier, the Atlantic representative for the Retail Council of Canada, said the federal announcement is welcome news, acknowledging it will have more of an effect for some members than for others.

"We would always welcome tax relief," he said.

"These are often products that people purchase all year-round, but going into the holiday season they probably purchase more."

Cormier said it would have been good to have more time to process the changes, but said anything that entices people to shop more right now is helpful for businesses.