Finance department non-committal on HST increase

The P.E.I. Liberal government has not said yes or no to the NDPs assertion that a re-elected Liberal government will likely raise the harmonized sales tax as a way to deal with the provinces $45M deficit.

In a news release,Leader Mike Redmond said the Liberals would likelyraise the HST from 14 to 15 per cent if re-elected.

When asked by CBC to respond to the NDPrelease, a spokesperson with the Department of Finance wrote in an email, "The economic and fiscal policy direction of this province will be guided by the priorities of the new premier."

We have a government that's been unable to balance the deficits and the budget," Redmond said.

"They're certainly not going to want to go to the polls on the back of their financial record, so we see that as certainly something that's going to happen in the very, very near future."

Redmond said the tax agreement between Ottawa and P.E.I. allows for an increase in HST two years after the initial deal was signed.

The NDP called earlier for the province to present a budget and open its books before Islanders vote in the next provincial election.