The revocation of the controversial tax is a boon for businesses in the service sector, who saw demand drop under the regime as consumers were forced to pay seven per cent more for everything from a haircut to a hamburger.
But business owners in the goods-producing sector are set to see their profits squeezed when the province converts back to the old provincial sales tax system in 2013.
The HST -- which combined the five per cent government sales tax with the seven per cent provincial portion -- gave businesses input tax credits for the seven per cent PST they pay on investments.
No comments:
Post a Comment