CTV News has learned Tuesday’s provincial budget in New Brunswick will include an increase to the harmonized sales tax.
A government source who spoke to CTV on the condition of anonymity also said the HST increase would be accompanied by an HST-credit system to offset costs for low and middle income earners.
The government source would not confirm how much the HST would increase. New Brunswick’s HST currently stands at 13 per cent.
The provincial government has floated the possibility of a two per cent hike to the HST, taking it to 15 per cent. The government has indicated such an increase could bring in $300 million annually in revenue.
A document obtained by CTV News shows that a family made up of two parents and two children, earning less than $35,000 annually, could be eligible for an annual HST credit of $800.
The same family earning $50,000 would be eligible for receiving a $500 credit.
Previously, the provincial government has indicated an HST credit system could cut into any revenue from a tax hike by $100 million.
With files from CTV Atlantic’s Nick Moore.
