Mr. Speaker, concerns have been expressed over the last number of months regarding the harmonized sales tax about to go in place in Nova Scotia, New Brunswick and Newfoundland. It has been a major topic at my town hall meetings and my visits to businesses where consumers and businesses have expressed concerns.
Because of concerns expressed by both small business and consumers, tax included pricing is being delayed until provinces representing 51 per cent of the Canadian people agree to blend their sales taxes with the federal goods and services tax. This is a victory for us in Atlantic Canada.
There are major benefits to a harmonized sales tax with the elimination of $700 million in hidden provincial sales taxes in the Atlantic, $280 million of this in Nova Scotia alone, one sales tax regime, a reduction in tax from almost 19 per cent to 15 per cent on most items, and in Nova Scotia a lowering of the personal income tax rate by 3.4 points.
With the changes recently announced I am confident that we can now move forward on April 1 with the new harmonized sales tax which will benefit Atlantic Canada-