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Taxpayers call for sales tax cut and spending restraint in Prince Edward Island

Author: Devin Drover 2025/03/26

The Canadian Taxpayers Federation is calling on Premier Rob Lantz to provide relief for Islanders by cutting the sales tax and eliminating wasteful spending. These recommendations form the foundation of the CTF’s pre-budget report for Prince Edward Island.

“Islanders are struggling to keep up with rising costs and the Lantz government can provide real help by cutting taxes,” said Devin Drover, CTF Atlantic Director. “Neighbouring Nova Scotia is cutting sales taxes to help families. Lantz should go even further and deliver real savings by cutting the HST by two percentage points to put more than $700 back in the pockets of the average family this year.”

Nova Scotia recently announced a one-point sales tax reduction, set to take effect on April 1, 2025. To keep Prince Edward Island competitive and help families cope with the rising cost of living, the CTF is urging the Lantz government to reduce the provincial HST rate from 15 per cent to 13 per cent.

Beyond tax relief, the CTF’s plan also recommends:

  • Replacing corporate subsidies with broad-based business tax cuts
  • Reducing non-health spending to 2022 levels
  • Bringing government compensation in line with Prince Edward Island’s labour market
  • Implementing a Sunshine List
  • Conducting a full spending review to identify and reduce wasteful spending

“These measures will stop reckless borrowing and save taxpayers millions in interest payments,” said Drover. “Right now, Islanders are on the hook for a staggering $167 million every year just to cover interest charges on the provincial debt.

“Lantz must use this budget to reverse course and stop the debt spiral, rein in wasteful spending and give taxpayers a break.”

The CTF’s full pre-budget proposal can be viewed HERE.


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Federal Director at
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