Sales Tax Canada GST HST

About Sales Tax Canada GST HST

Canadas Goods and Services Tax was introduced in 1991 at 7 percent by the Mulroney government. The GST replaced the Manufacturers Sales Tax, a hidden tax on manufactured goods. The GST was extremely unpopular. The Liberal Party under Jean Chretien promised to abolish the GST in the 1993 election but did not do so after winning. The GST rate was reduced to 6 percent in 2006 and 5 percent in 2008 under the Harper government. Several provinces harmonized their provincial sales taxes with the GST to create the Harmonized Sales Tax HST. Ontario, British Columbia, and several Atlantic provinces use the HST. British Columbia reverted to separate PST and GST after a referendum.