New Brunswick's finance minister says residents in the province shouldn't assume they will see a reduction in taxes at the cashier, despite the federal government's announcement it will be rolling back the GST.
Victor Boudreau said the province is considering raising the provincial sales tax in the province when the federal government drops GST to five per cent on Jan. 1, 2008.
"This is something worth looking at, but we're certainly nowhere near to making a decision on that," Boudreau said.
It may be easy for some jurisdictions to cut back on taxes, he said, but not all provinces are awash in money.
Increasing the provincial sales tax may be a way to make up for finances the province has lost from equalization, he said.
"This federal government seems to have turned the page on equalization, even though provinces like New Brunswick don't feel like they're getting their fair share," Boudreau said.
Under the harmonized sales tax agreement, Newfoundland and Nova Scotia would also have to agree to a tax increase before it could be brought into effect in New Brunswick.
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