GST cut question...

[Uzo]

Anything less than the 17.5% VAT that I paid in the UK is fine with me.

 

[dreamer]

Let's look at it in real terms that we can understand.... $5/wk = $260/year. One extra date per year with your favourite girl. Is that worth it for you?

savings that small are never really realized but lost to increased spending or increased prices, that is the reality put in real terms

 

[Papi Chulo]

I would hazard to say that the general public won't see a penny of this reduction. Why?

When the FST was removed and replaced by the GST all prices were supposed to drop by 13%. Speaking from direct knowledge (I was in Retail at the time) No price drops were realized because all retailers simply left their selling prices as is and simply added the GST at the register.

I did also work in retail at that time. When the GST was introduced we switched to using UPC's and MOST prices were in fact lowered.

 

[Papi Chulo]

Just wait unitl Ontario adopts a "blended sales tax"... the incentive to do this is much more money for both federal & provincial governments.

Quebec & Atlantic Canada all use the blended sales tax.. it is just a matter of time before Ontario does as well.

 

[drlove]

The transit credit will start in July.

Yes, but how will it work?? Is the onus on the patron to save their receipts when they purchase their passes, and then submit them with their tax return??

 

[biog]

I don't see this happening.

In this case I can see all retailers raising their prices unilaterally by 1%. Now it is so easy with all products being priced by UPC. Though they would have to replace all the shelf stickers but that cost would be offset by the increased profits within an hour.

If prices are going to increase, they wouldn't do a unilateral 1%. With most retailers using the .99 format, you won't see an item that was $4.99 automatically increased to $5.04, it would be to obvious.

 

[Hotdog]

Yes, but how will it work?? Is the onus on the patron to save their receipts when they purchase their passes, and then submit them with their tax return??

Yes, you will have to keep "receipts or passes for verification purposes". "Consultations will take place with transit authorities to develop appropriate receipting practices."

 

[argoon]

If prices are going to increase, they wouldn't do a unilateral 1%. With most retailers using the .99 format, you won't see an item that was $4.99 automatically increased to $5.04, it would be to obvious.

it'll probably depend on the product and the price but since gasoline price hikes of late are likely going to get factored into a price increase as well, they will roll the 1% in with that increase and no one will be the wiser.