Bloomberg News

Canada Pays C$2.2 Billion to Quebec to Harmonize Sales Tax

September 30, 2011

Sept. 30 (Bloomberg) -- Canada will pay C$2.2 billion to Quebec to compensate the province for harmonizing its sales tax with the provincial rate, Prime Minister Stephen Harper said.

Harper made the announcement at a news conference today in Quebec City.

Quebec adopted a value-added sales tax in the early 1990s that blends provincial and federal sales taxes. Quebec lobbied for compensation after the federal government gave financial support to Ontario and British Columbia to harmonize their sales taxes last year.

British Columbia voters opted to rescind the harmonized tax in a referendum whose results were released Aug. 26.

--Editors: Carlos Torres, David Scanlan

To contact the reporters on this story: Andrew Mayeda in Ottawa at; Christopher Donville in Vancouver at

To contact the editors responsible for this story: Chris Wellisz at; David Scanlan at

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