Newfoundland and Labrador charges the Harmonized Sales Tax (HST) at 15%, combining the 5% federal GST with a 10% provincial component. HST applies to most goods and services, generating significant provincial revenue. Unlike provinces with separate PST systems, HST administration is handled federally, simplifying compliance for businesses. The provincial HST rate has varied over time as governments adjusted the provincial portion. Municipalities generally don't pay HST on purchases for municipal purposes but rely on provincial services funded partly by HST revenue. Sales tax policy affects cost of living, business operations, and the overall economic environment in communities across the province.