Nova Scotia should expand HST and introduce carbon tax, report recommends

HALIFAX – A review of Nova Scotia’s tax system says the harmonized sales tax should be broadened to cover expenses including books, children’s clothing, diapers and home energy costs.

“Tax relief and rebates to offset or mitigate the impact on low income Nova Scotians must also be part of the program,” said former Ontario cabinet minister and leader of the report, Laurel Broten.

She also recommends a government spending freeze, lower income tax rates and the implementation of a carbon tax.

“The basic rationale for pollution taxation is clear. Pollution imposes costs on society that are not currently worn by the polluter,” she said. “A tax ensures that the polluter accounts for these costs and a Nova Scotia pollution tax phased in over the next ten years can play a key role in shifting the tax balance.”

Those key proposals are among 22 recommendations about taxes and 20 more for regulations and fees.

Broten says in her report that the HST, which stands at 15 per cent, should be expanded to replace the revenue that would be lost from lower income tax rates.

She says her recommendations are intended to address the province’s economic struggles and aging population as well as the affordability of public services.

She was appointed in February to lead the review.

Finance Minister Diana Whalen says she will review the recommendations.

“I intend to talk to Nova Scotians about this report and how we can strengthen Nova Scotia’s future,” said Whalen.

The first discussion session, she said, will be held with her colleagues next month.