The Tory government rejected the idea of introducing a provincial sales tax in Alberta, a day after Finance Minister Ron Liepert appeared to open the door a crack to the tax.
Liepert told a business luncheon in Edmonton on Tuesday the concept of a provincial sales tax had often come up during recent budget consultations and there needed to be a public conversation about the issue.
However, in a government-issued news release Wednesday, Liepert said he should have been clear he was talking about a broad discussion of taxation in general as the province tries to lessen its dependency on resource revenues.
The finance minister said he, along with Premier Alison Redford and cabinet, "are committed to preserving Alberta's 'No PST' status."
Speaking to reporters in Toronto, Redford said she believes the finance minister was speaking about the province's financial imbalance.
"My understanding is that he didn't refer to a provincial sale tax, but I will say that it's no surprise that that's the story, because Albertans are very sensitive to the fact that we've never had a provincial sales tax," she said.
"We're very proud of the fact that we've never had a provincial sales tax. And we will never have a provincial sales tax."
The comments came as Liepert prepared to release the government's second-quarter financial update on Monday.
Liepert has already said the projected deficit will return to the approximate level predicted in the spring budget, about $3.4 billion.
In August, the province had sliced its deficit projection to $1.2 billion because of rising energy prices. Since then, worldwide economic uncertainty has surged, though oil prices increased Wednesday to over $100 U.S. a barrel for the first time in five months.
Opposition parties reacted to the PST kerfuffle with bemusement and irritation, rejecting the idea of a sales tax and blasting the government for financial mismanagement of its $40-billion budget.
Wildrose finance critic Rob Anderson accused the Progressive Conservative government of intending to introduce a sales tax if it wins the provincial election, expected next spring.
He noted Energy Minister Ted Morton, when he helmed the finance department last year, also mused about the possibility of a sales tax in Alberta one day.
And Doug Griffiths, now Municipal Affairs Minister, was the only one of the six candidates in this year's PC leadership race who suggested a broader discussion should be had about the sales tax.
NDP Leader Brian Mason said he wasn't surprised Redford would "yank on Ron Liepert's chain."
"There's no question they want to bring in a provincial sales tax, but they know it would be political suicide. At least the smart ones know," said Mason.
Liberal deputy leader Kent Hehr said the provincial sales tax debate is a non-starter - for now.
"Our finances, they're run on a Ponzi scheme known as international oil markets. Whether it's right to do that, I'm not so sure," he said.
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