We tend to think about retail sales taxes as consumer taxes, but anywhere from 30% to 40% of the revenue does come from business inputs, and a substantial chunk of that from machinery and equipment. If you're a provincial government...I find it hard in this environment to look at what's happening in our manufacturing sector and not move on one of the major impediments. Not only has it raised the cost of machinery and equipment, but the tax gets embedded in exports. Export margins are already being extraordinarily squeezed. I'd like to see those get harmonized with the GST.
On November 20th, 2007. See this statement in context.