The Quebec National Assembly adopted a motion yesterday calling on Ottawa to give Quebec a $2.6-billion compensation package similar to what was offered Ontario for harmonizing the provincial sales tax with the federal goods and services tax.
Ontario will receive $4.3-billion. The package was similar to what three Atlantic provinces received in 1997 after harmonizing their taxes in return for $961-million in federal compensation.
Quebec harmonized its sales in 1991, but didn't receive any federal compensation. Federal Finance Minister Jim Flaherty said there would be no compensation because the province had not entirely harmonized the tax. His provincial counterpart, Monique Jérôme-Forget, said she was surprised to hear that the two taxes weren't totally harmonized. But that is about to change.
"I expect that we will be completely harmonized in the same way as Ontario and then receive the $2.6-billion in compensation," Ms. Monique Jérôme-Forget said in the National Assembly yesterday.
Rhéal Séguin