MacLauchlan HST tax grab will hurt Island charities

Belfast – Island charities will lose twice when the MacLauchlan government hikes the  HST this week, says Belfast-Murray River MLA and Opposition Finance Critic Darlene Compton.

“Island charities will get dinged twice when the MacLauchlan government raises the HST this week. Higher taxes will mean less money available to donate to charities from citizens and businesses. To make matters worse Island charities have the lowest HST rebate in Canada at 35 per cent so they get less money back from government too. It’s a double hit that Island charities don’t deserve,” says Compton.

Prince Edward Island has the lowest HST rebate level for Island charities of any Canadian province at 35 per cent. Most provinces offer at least a 50 per cent HST rebate for charities with Ontario offering the largest rebate for charities at 82%. During the Spring sitting of the Legislature, Compton lobbied the MacLauchlan government to increase the HST rebate for Island charities prior to the budget being tabled. The MacLauchlan government announced an increase to the HST in this year’s budget and made no change to the rebate level for Island charities.

“Island charities do a lot of good work in our communities and they deserve to be treated fairly. Instead they are getting a raw deal from the MacLauchlan government’s HST tax grab,” said Compton.

The HST increases to 15 per cent on October 1.


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