Cut to GST expected to have positive results for Caledon businesses
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 two years ago. The initial cut from seven to six per cent was in July 1. That means the 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 per cent reduction will amount almost $12 billion 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 owners and managers in Caledon thought the decrease wouldn't affect their business that much, but would be good for the economy overall.

"I think it's good because it affects everybody," said John Downey, owner of Downey's Farm Market. "One per cent will add up quite a bit."

"Customers will see it positively, as there's more money in their pockets and it will just make them feel a little better," said Donna Kamiel-Forster, owner of Forster's Book Garden in Bolton. "For us, books are GST only, so one per cent lowered helps significantly."

Owner of Gallery Gemma in Alton, Anne-Marie Warburton, said the GST change will be positive and it makes the PST (provincial sales tax) more dramatic.

"I'm not sure somebody will make a purchase based on a one per cent decrease, but at the end of the sale it makes it more positive."

For other business operators, such as Scott Andus of Woody's Building Products in Bolton and George Berney of Berney's Pro Hardware in Caledon East, unless big items are purchased, one per cent won't make much of a difference.