The Provincial Government has announced a Provincial Sales Tax (PST) Back program on all Prince Edward Island (PEI) made craft and giftware products sold in the province during the Studio Tour. The Tour takes place September 30 and October 1, 2000.
The Studio Tour is designed to support both PEI craft producers and retailers in the shoulder season. By granting back the value of the PST to retailers, the provincial government is encouraging purchases of craft products by reducing the total cost to consumers.
Minister of Tourism, Greg Deighan, added his endorsement of the program by stating, "This will be an excellent way to boost tourism and sales in the shoulder season for 2000. I am confident that visitors and Islanders alike will take advantage of the sales break as well as the Studio Tour itself and the success of the program encourages a repeat for next year."
The tax back proposal was initially put forward by the craft and giftware industry in consultations held across PEI on July 10, 2000.
The PST Back initiative will work this way:
- Retailers will charge both the GST and PST on the value of craft and giftware purchases.
- Retailers will give back the value of the PST on those purchases to the consumer.
- Retailers will pay the value of the PST collected during the two days to the Department of Provincial Treasury.
- Retailers will then apply for a grant through Prince Edward Island Business Development for the value of the PST given back to consumers.
The PST Back initiative only applies to Prince Edward Island made craft and giftware products purchased on PEI on September 30 and October 1, 2000.