The provincial government’s budget will take a hit if the HST on new rental housing builds is eliminated, but it won’t have too big of an impact, according to government.

Yesterday, Finance Minister Siobhan Coady announced that she has written the federal government asking that both the federal and provincial portions of the tax, amounting to about 15 per cent in total, be eliminated.

While Coady couldn’t provide exact figures, she admits that it will be a loss in revenue for the province.

But, on a $10-billion budget she believes they will be able to confidently move forward without it.

The federal government has yet to respond to government’s proposal.