The World - News from April 26, 1989

Canada’s federal government will proceed with a national sales tax that has angered consumers and could drive up the inflation rate. Prime Minister Brian Mulroney’s Progressive Conservative government said it will go on alone with plans for the tax after it failed to reach agreement with the 10 provincial governments. The federal government had been negotiating to set up a joint system with the provinces, many of which have their own sales taxes. The government of Quebec province said it plans to challenge Ottawa’s constitutional right to unilaterally impose the new tax, which will cover everything from aspirin to piano lessons but apparently not food.