Introduction of Goods and Services Tax {GST} in Canada for taxation reforms and revenue collection.

Canada implemented the Goods and Services Tax {GST} to replace the Manufacturer's Sales Tax. The decision was made to simplify the tax system and broaden the tax base. The GST was set at 7% on most goods and services, with several exemptions such as basic groceries, healthcare, and financial services. The tax collection was divided between the federal and provincial governments. The introduction of the GST led to significant changes in the economy. It helped eliminate the hidden cascading taxes present in the previous tax system, promoting efficiency and reducing production costs. The tax was intended to be more transparent and equitable for consumers and businesses. Though initially met with resistance, the GST ultimately streamlined tax administration and enhanced revenue for the government. The GST continues to be a fundamental component of Canada's tax system, generating substantial revenue for public services and infrastructure. It plays a crucial role in funding government programs and initiatives. Over time, the GST has been subject to adjustments and modifications to ensure its effectiveness and relevance in the evolving economic landscape. #Canada #GST #TaxReform #EconomicImpact