"Our government received overwhelmingly positive comments from consumers and small business owners when we first announced the introduction of the provincial sales tax exemption in 1997," said Provincial Treasurer Pat Mella. "This fall, the government approved the first extension of the exemption. This latest policy decision reflects the valuable input government received from across the province. By taking government action now, businesses can build their marketing plans and business strategies for the coming year, knowing that consumers will find the savings attractive."

In November, 1997 the Legislature amended the Revenue Tax Act to remove the PST on all clothing and footwear items. For the period October, 1997 to June, 1998 sales of clothing and footwear increased by 26 per cent. On September 23, 1998 the exemption was extended to December 31, 1998. The provincial sales tax exemption applies to all clothing and footwear.

"This proactive step to extend the provincial sales tax exemption will support Islanders and local businesses. It is also an integral part of the government's strategy to enhance economic activity beyond the traditional tourist season and will add value to the PEI shopping experience."