PEI

P.E.I. opposition takes aim at HST hike

P.E.I.'s opposition parties had one big target to focus their criticism on in Tuesday's Liberal budget: the HST hike.

PCs, Greens say 1 per cent hike will hurt average, low-income Islanders

The P.E.I. government expects to raise $22M annually by increasing the H.S.T. by 1 per cent. (iStock)

P.E.I.'s opposition parties had one big target to focus their criticism on in Tuesday's Liberal budget: the HST hike.

Both the Progressive Conservatives and the Green Party said the one per cent increase would be a blow to average and lower–income people.

Opposition leader Jamie Fox started sending out shots on social media, tweeting "more of your hard earned money going from your pocket to their pockets."

PC MLA for Belfast-Murray River, Darlene Compton, felt the tax raise will hurt more than Premier Wade MacLauchlan realizes.

"We need to be concerned," she said. "If you talk to Islanders, they're struggling now with trying to buy groceries and pay the bills and one per cent might not be a lot to the Premier but it's a lot to everyday Islanders."

The budget did include some tax savings which the government said would benefit low and modest–income earners, such as an increase in the basic personal income tax exemption of almost $300.

"There's all sorts of little nuggets being given to seniors and low–income Islanders here," said Peter Bevan-Baker, Green Party leader. 

"But all of that is going to be cancelled out by the introduction of the one per cent increase in the HST So at the end of the day, are any Islanders better off? In particular, are low–income Islanders better off? I'm not sure what the answer to that is."

The HST will go up from 14 per cent to 15 per cent effective Oct. 1.