News release

Government To Take HST Off Home Electricity Starting Oct. 1

Premier's Office

Premier Darrell Dexter today, Sept. 10, fulfilled one of his key commitments by announcing that, effective Oct. 1, government will remove the provincial portion of the HST from basic home electricity charges to make life more affordable for families.

The reduction will be a rebate equal to the eight per cent provincial portion of the HST on basic home electricity bills.

"Saving money on the cost of electricity will make life more affordable for Nova Scotia families," said Premier Dexter. "I am proud to be able to fulfill my commitment and provide families with the savings they deserve."

Previously, only households whose electricity consumption exceeded an average of 27.4 kilowatt hours per day, were eligible for the rebate. The base charge was taxed. Since 2002, electricity rates in Nova Scotia have increased by 34 per cent. As a result of today's announcement, almost 200,000 additional households will receive the rebate and 200,000 more will see greater savings.

The tax rebate is expected to save households about $15 million for the remainder of the fiscal year. That tax reduction is being offset through savings identified throughout government.

"We are taking a balanced approach to implementing our commitments. This ensures that, in these difficult fiscal times, we fulfill our commitments while continuing to live within our means," said Premier Dexter.