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Which year was the GST STARTED?


ORIGINALLY, WHAT WAS THE GST TO BE USED FOR AND FOR HOW LONG WAS IT SUPPOSE TO LAST?

GST started officially January 1, 1991, but it started applying in the fall of 1990 to contracts like Gym memberships that would last into 1991.

I don't remember them actually giving a deadline when they would cancel it, though the Liberals were in opposition at the time and promised they'd abolish it if elected. They didn't, and some of their MP's actually resigned at the time. It was supposed to be used to pay down the debt. To my knowledge, that is still what it is being used for; at one point, Canada had both a debt and a deficit, and now it only has a debt, and an annual surplus.

january 1991

The GST replaced the hidden manufacturer's tax that was embedded in most goods made in Canada (at different rates depending on the item). In other countries, the GST or VAT tax was brought in and gradually rose in the percentage points, but as an offset the income tax was meant to decline. Increase your personal spending power and throw the tax burden on the purchased "luxury" items (basic necessities are zero-rated).

They are presently going to reduce the GST by another percentage (January 1, 2008) point but I doubt that it will ever go away.

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