Goods and Service Tax – GST – By: – Nagesh Bajaj – Dated:- 3-10-2011 Last Replied Date:- 30-12-1899 – In Canada Goods and Services Tax (GST) is a multi-level value added tax introduced on January 1, 1991, by Prime Minister Brian Mulroney and Finance Minister Michael Wilson. The GST replaced a hidden 13.5% Manufacturers Sales Tax (MST); Mulroney claimed the GST was implemented because the MST hurt the manufacturing sector's ability to export and also replaced the Federal Telecommunications Tax of 11%.The introduction of the GST was very controversial. As of May 18th, 2010, the GST rate is 5%. The European model has helped to become the Canada s economy more efficient and competitive with lower-priced goods in the international market. H
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and services. The Federal Goods and Services Tax (GST) is collected by the Canada Revenue Agency (CRA). GST is a tax that applies at a rate of 5% to the supply of most goods and services in Canada . Three provinces ( Nova Scotia , New Brunswick , and Newfoundland and Labrador ) harmonized their provincial sales tax with GST to create HST. HST applies to the same base of goods and services as GST, but at a rate of 13%. Of this, 5% is the federal part and 8% is the provincial part Some specific products and services are exempt from GST. Such as Most health, medical, and dental services performed by licensed physicians or dentists for medical reasons; Child-care services; Long-term residential accommodation; Most goods and services provide
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goods and services that are not exempt from GST is a lot more than those which are zero-rated. Certain lower income segments of the population, while not exempt from paying GST, may be eligible to receive quarterly GST credits. The GST/HST credit is a tax-free payment that helps offset all or part of the GST or HST paid. Provincial Sales Tax (PST) is also called Retail Sales Tax (RST). In Quebec this tax is called QST. The tax is collected at the provincial level. Each province could charge consumers differently. The following list shows the current rates. The rates could change in the future. Ontario 8% British Columbia 7% Alberta 0% ( Alberta does not collect provincial sales tax) Manitoba 7% Quebec 7.5% Prince Edward Island ( PEI )
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