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GST Reduction

Home GST Reduction

Policy Statement : The GST rate will be reduced by 2% over four years, with 0.5% reductions implemented annually.

Businesses must:

  • Update point-of-sale systems to reflect the annual rate changes.
  • Clearly communicate adjusted rates to consumers.

The CRA will provide updated tax guidelines and conduct periodic audits to ensure compliance. Businesses found non-compliant may face fines and potential suspension of operating licenses.

  1. PurposeTo reduce consumer financial burdens and stimulate economic activity by incrementally lowering the GST.
  2. ScopeThis policy applies to all goods and services subject to GST in provinces and territories that have adopted this tax framework.
  3. Definitions
      GST: A combined federal and provincial sales tax applied to goods and services.
    1. Incremental Reduction: A gradual decrease in the GST rate over a specified timeframe.