Provincial Treasurer Patricia J. Mella announced today that the provincial sales tax exemption on clothing and footwear has been extended until December 31, 1998.
In making her announcement, Mrs. Mella stated, "The removal of the provincial sales tax on clothing and footwear purchased in Prince Edward Island has had a direct benefit on all Island residents. Costs have been reduced for consumers and local retailers have enjoyed increased sales."
The exemption, which was introduced on November 24, 1997, was scheduled to expire on September 26, 1998, at which time only clothing and footwear priced at $100 or less, GST included, would be exempt from provincial sales tax.
Mrs. Mella said, "By extending the exemption until the end of the year, government will have a better opportunity to monitor sales and revenues prior to making a final decision on whether or not to continue the exemption on all clothing and footwear."
It is expected the sales tax exemption will be fully discussed during the fall sitting of the Legislative Assembly.