The Canadian governtments decision to cut the gst (tax) twice

Canadian Government 's decision to cut GST (tax ) twice

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2 April 2009

The Canadian government 's decision to cut the GST (tax ) twice

GST is an acronym for the goods and services federal tax in Canada . It is a five percent tax that charged on goods and services that are sold for consumption in the domestic market . However , there are some specific goods and services which are exempted from this tax such as prescription drugs , exports and basic groceries . In the New Brunswick , Labrador

, Nova Scotia and Newfoundland , the GST tax is combined with a provincial retail sales tax of eight percent and is referred to as the harmonized sales tax (Monroe . In the 2006 , the Canadian federal budget proposed a reduction in the GST rate from 7 to 6 which was to be effective from the first of July 2006 . A corresponding reduction of one percent was made to the rate of the Harmonized Sales Tax (AIS . The 2006 federal budget had pointed towards a further reduction in the GST rate to five percent in a future date . This second cut came to be formally announced in the Throne speech of 2007 (CTV .ca , was later confirmed on 30th of October 2007 during an economic statement by the Finance Minister . This second cut was to be effective from the 1st of January 2008 (CBC News

The decision by the Harper government to cut the goods and services tax twice was arrived at in...