HST rate will be lowered if re-elected, says New Brunswick premier

New Brunswick Premier Blaine Higgs announced Thursday morning he will lower the province’s HST rate from 15 to 13 per cent if re-elected this fall.

The premier made the announcement at a window and door manufacturer in Moncton with seven Progressive Conservative candidates standing behind him.

The plan is to drop the HST in two stages.

The first in April, 2025 with a one per cent decrease and then another one per cent drop will come the following year.

"We'll cut the HST by one per cent in the first budget, '25/'26 and one more per cent in the second budget '26/'27, all the while, we'll maintain our balanced budget," said Higgs.

A simultaneous announcement was also made by Conservative ministers in Fredericton, Saint John and Edmundston.

Premier Blaine Higgs is pictured with cabinet ministers Ernie Steeves, Greg Turner and Sherry Wilson at Extreme Window & Entrance System in Moncton on July 18, 2024.

Higgs spoke about the province's economy and how many New Brunswickers are struggling with the cost of living and taxes.

"Just like you, I've seen the sticker prices go up as inflation and the federal carbon tax have taken a toll. And let's be clear, we do not support the federal carbon tax. We can only wait for the day when it is completely scrapped," said Higgs.

During a question period with reporters, Higgs was asked why he just doesn't lower the HST now and not wait until he's possibly re-elected.

"Putting in the HST, when we make changes to that, is a requirement that we usually do in a budget process and I actually think we have to legislate that in terms of making changes for people," said Higgs.

The premier also said it involves a lot of businesses making changes in everything they do in day-to-day calculations.

"Most of that is certainly all automated today, so it's not like it'll be difficult once it's done, but rolling this out now gets people prepared to make these changes in the new year," said Higgs. "It's important to know that everyday people are going to find it a little bit cheaper to live."

When fully implemented, Higgs said the average family in the province will keep an additional $1,000 of their money per year instead of being taxed by the government.

"And this is a conservative estimate," he said.

It would also mean New Brunswick would have the lowest HST of all the Atlantic provinces.

In July 2016, New Brunswick’s former Liberal government raised the HST to 15 per cent from 13 per cent.

The provincial election is scheduled for Oct. 21.

For more New Brunswick news visit our dedicated provincial page.