A two-month tax holiday being proposed by the federal government could cost New Brunswick $62 million in revenue.
Premier Susan Holt unveiled the figure during question period in the provincial legislature on Friday morning.
Holt said her government only learned about the proposal on Wednesday — one day before it was announced.
“We’re in conversations with the federal government right now to ensure that those costs get covered,” the premier said in response to questioning from the opposition.
Ottawa announced on Thursday that it is moving to temporarily lift the tax on things like groceries, snacks and kids clothing starting Dec. 14.
The 15 per cent harmonized sales tax (HST) in New Brunswick is made up of a federal GST component of five per cent and a provincial component of 10 per cent.
Ottawa collects the entire amount and sends the provincial portion back to the province. Federal officials said the entire HST would be removed if the plan goes ahead.
Holt said they want to ensure that New Brunswickers “get the benefit of the tax rebate and not the pain of the hit to our revenue.”
The potential revenue loss comes as the new Liberal government faces questions about how it plans to pay for $79 million in platform commitments this fiscal year.
Second quarter projections — the final update where the previous Progressive Conservative government was in power — show a deficit of $92 million, compared to the budgeted surplus of around $41 million.
It comes after the province’s projected deficit for 2024-25 jumped to $92 million in the second quarter — the final update where the previous Progressive Conservative government was in power.
Holt said on Wednesday that her team is looking at the updated figures and where they can find opportunities for savings.
