The Harmonized Sales Tax of Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario and British Columbia may have contributed to an average increase in consumer prices, according to a study released Thursday by the Business Council of British Columbia.
According to the report, the HST has increased prices in British Columbia by approximately $1 for every $165 spent.
The report - which was conducted by Jonathan R. Kesselman, Canada Research Chair in Public Finance at the Simon Fraser University School of Public Policy - utilized data from Statistics Canada and also found the HST has resulted in a 0.6 percent increase in the British Columbia consumer price index.
"The HST is not a 'tax grab' and … its overall impact on the prices including taxes paid by consumers is very modest," said Kesselman in a statement.
Last month, economist Jack Mintz warned that the provinces of Saskatchewan and Manitoba are at risk of losing business and competition due to high corporate tax rates and the failure to adopt the HST.
