The harmonized sales tax (HST) is going down by one per cent in Nova Scotia starting Tuesday.
The change brings the overall tax rate to 14 per cent, making it the lowest in Atlantic Canada.
The HST in all three other Atlantic provinces is 15 per cent.
Premier Tim Houston promised to cut the HST by one per cent during the 2024 provincial election campaign in an effort to make life more affordable for Nova Scotians.
A motion was passed in December to permanently reduce the provincial portion of the HST.
Nova Scotia’s HST combines the provincial sales tax with the federal goods and services tax (GST) and is applied to the same types of goods and services.
The federal portion is five per cent.
“Changes to the Pension Benefits Act and regulations will also go into effect April 1, making it easier for Nova Scotians aged 55 and older to access and manage their retirement savings. The new rules provide people with the ability to unlock up to 50 per cent of their locked-in funds when transferring to a life income fund (LIF),” reads a Monday news release from the province.
On Tuesday, Nada Musa, the manager of East Cup Cafe in Halifax, noticed a positive reaction to the reduction.
“People are shocked by the amount of change,” Musa said. “It couldn’t have come at a better time. Everyone somehow needs a break financially.”
-With files from Emma Convey
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