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.
The report by former Ontario cabinet minister Laurel Broten also recommends a government spending freeze, lower income tax rates and the implementation of a carbon tax.
MORE INFO: Read the full report here
Those key proposals are among 22 recommendations about taxes and 20 more for regulations and fees.
Broten said 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 said 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 said she will review the recommendations as well as consult with the public for feedback.
The Opposition Progressive Conservatives are urging the government to reject the report, describing a carbon tax as a job-killer.
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Party leader Jamie Baillie said broadening the HST would also hurt families.
Kevin Lacey, the Atlantic Canada director for the Canadian Taxpayers Federation, was also critical of the report, which he said does not address the issue that Nova Scotians pay too much in taxes.
“All we’re doing here is taking from one hand and giving to another,” he said.
With files from Rebecca Lau, Global News
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