HST should be removed from electricity says Green Party leader

Prince Edward Island's Green Party leader says it's time the HST is removed from electricity bills in an effort to promote cleaner energy in the province.

In the legislature on Thursday, Peter Bevan-Baker said while the province is renegotiating the terms of the HST with the federal government, it's a chance to review what is taxed and what isn't, including different kinds of home energy. 

"Right now, this government puts the HST on our electricity, but does not put it on oil. Essentially, and in so doing, promoting the use of oil over electricity and other clean energies," he said.

Bevan-Baker asked the government to create a fairer tax regime by removing HST from electricity.

"[It's] an essential service, and putting clean energy sources on an even footing with fossil fuels," he said.

Last month, the P.E.I. Real Estate Association called on the province to exempt all forms of home heating from the HST, not just oil.

The association said over the past decade home builders have been switching to more efficient and environmentally-friendly heat sources such as heat pumps and electric boilers.

But, it said the people who buy those homes are being punished by a government policy that charges five per cent HST on heating oil, and fourteen percent on everything else.

Finance Minister Allen Roach said the province is going through an energy strategy now, and those ideas will be taken into consideration.

Bevan-Baker also asked for more public consultations on feedback about the HST. 

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