Cut to GST will be positive for business
By Jon Yaneff

As of Jan. 1, the Goods and Services Tax (GST) has been knocked down by another percentage point.

Canadians now only pay five per cent federal sales tax, instead of the previous six per cent.

This is the second cut the government of Prime Minister Stephen Harper has made to GST since is came to power almost two years ago. The initial cut from seven to six per cent was July 1, 2006. That means Harper's campaign pledge to lower the tax to five per cent has been fulfilled.

The tax cut will benefit all Canadians regardless of age or income, the government has stated, including those whose incomes are too low to pay income tax and for consumers. Overall, the total savings from the two percentage point reduction will amount almost $12 billion in the next year.

The government is also taking credit for cutting other taxes since taking office, including income and business taxes. They reported they have reduced the overall tax burden for Canadians and businesses by nearly $200 billion, and taxes have been brought to their lowest level in nearly 50 years.

Several business operators in King thought the tax decrease wouldn't impact on their business overall, but that it would be good for the economy

"Any cut in taxes is good," said Ron Ivany, owner of the Rose Gallery in King City. "Overall it will be good for the economy since the GST affects everybody and we all pay it. It's only one per cent, but it's better than nothing."

"I don't think it will effect my business," said Kathy Vogan, the owner of Piety Ridge Primitives in Schomberg. "But, I take issue because of when the tax reduction was implemented since it doesn't give much time for the business community to make the change in their systems."

Other business people, such as John Sotnick, owner of Schomberg Hardware didn't think the tax reduction would affect business, unless a large item is purchased such as a barbecue.