Prince Edward Island (P.E.I.) and the Canadian government have signed an agreement stating that P.E.I. will implement the harmonized sales tax (HST) next year. The 14% HST is scheduled to take effect on April 1, 2013 and will replace the current combined GST and PST rate of 15.5%. (Memorandum of Agreement Concerning a Canada-Prince Edward Island Comprehensive Integrated Tax Co-ordination Agreement, May 2012)