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2 Goods and Services Tax
3 Harmonized Sales Tax
Every province except oil-rich Alberta, Newfoundland and Labrador, and two of the Maritimes has a provincial sales tax, or PST. The amount of this tax varies from province to province:
Harmonized Sales Tax
When Jean Chrétien's Liberals came to power in 1993 they promised to abolish the GST. This proved impractical, however, and instead they opted to attempt to merge the GST with the PST in each province. Only three Atlantic provinces--New Brunswick, Newfoundland and Labrador, and Nova Scotia--agreed to this, however. These provinces thus have the Harmonized Sales Tax or HST, a 15% tax that replaces both the local PSTs and the GST.