Quebec may accelerate tax hike

The Quebec government may accelerate plans to increase its sales tax, and to hike various rates for public services, according to the Canadian Press.

In its last budget, the Charest government announced its intention to increase the QST from 7.5 percent to 8.5 percent starting Jan. 1, 2011. Officials also confirmed that all user fees, except daycare, would be indexed to the rate of inflation.

The move was aimed at helping the province return to a balanced budget. In March, Quebec tabled its first deficit budget in a decade.

But now the government is reportedly considering moving up the increase to next year.

In an interview with The Canadian Press, Finance Minister Raymond Bachand said the government would only do so if in the coming months there is solid evidence the province's economy has rebounded.

The changes may be included in the province's next budget.

A one percentage point increase in the QST represents approximately $1-billion in revenue for the province.