Doer: Manitoba looking seriously at HST

Manitoba Premier Gary Doer said Tuesdayhis province has no choice but to look seriously at harmonizing its provincial sales tax with the federal GST, despite comments last week when he appeared to differ from his finance minister.

Last week Doerspoke at the Council of the Federation summer meeting in Regina suggesting Manitoba would likely not follow the lead of most Canadian provinces by harmonizing its sales levy with the federal Goods and Services Tax.

"The bottom line is, we have opposed it, we haven't gone into it and that's where we stand today," he said at the time comments that appeared to be at odds with those of Manitoba Finance Minister Greg Selinger, who said the province was examining the possibility of a harmonized tax.

The federal government is offering cash incentives to provinces that have yet to move to a harmonized tax regime.

But this week Doer said that when 94 per cent of the country is moving toward harmonization, Manitoba has to look seriously at the pros and cons.

'We have to make a decision'

"What is at disadvantage for Manitoba on the business side?" Doer asked. "We already know the disadvantages on the consumer side. How can we manage that? How can we mitigate it? And if we can't mitigate it then we have to make a decision."

"Our feet are never in cement," said Doer. "We've always been opposed to a shift off of business, onto consumers. But what we're opposed to and what the country's doing are two different things. So, that's what we're wrestling with."

Critics of the HST say it would put an end to important exemptions from provincial sales tax that currently benefit low-income earners.

But both B.C. and Manitoba say now they are taking a second look at harmonization because Ottawa sweetened the pot in its deal with Ontario by allowing provinces to exempt items fromthe HST sheltering such things as such as children's clothing and car seats from the full combined tax.

Manitoba, Saskatchewan and Prince Edward Island have not yet harmonized their sales tax with the GST, while other provinces have already done so or said they will.