GST Reduction A Boost To Canada's Economy
GST reduction a boost to economy
Canada's reduction to GST and HST rates will provide a much-needed boost to the Canadian economy, according to the Canadian Federation of Independent Business.
"The one-percentage point cut puts over $5 billion dollars back into the national economy, at a time when sales are traditionally sluggish in many sectors," CFIB President Catherine Swift noted.
"Our members' number one priority is tax reduction of all kinds," she continued. "They want to see more money left in Canadians' pockets." When the GST/HST rate was initially cut by one percentage point in July 2006, surveys by CFIB of its members before and after the rate reduction showed the majority of businesses handled the transition smoothly.
"Our research suggests that our members will have these changes well in hand," Swift said. CFIB has made an updated version of its GST/HST Checklist for business, prepared together with the Canada Revenue Agency, available at www.cfib.ca.
The federal government announced in October 2007 that the GST would be cut from 6 to 5 per cent starting Jan. 1, 2008, while the HST rate in Nova Scotia, New Brunswick, and Newfoundland and Labrador will fall from 14 to 13 per cent.