You raise a very important point.
The fact is, in every country that offers tax-free shopping to foreign visitors, the net result for tax authorities is positive. All the studies we've conducted show that, for every dollar refunded to a foreign tourist, Canada gains $1.70 in additional tax revenue, generating a net gain for the Canada Revenue Agency. Based on the calculations, that amounts to $170 million in net tax revenue for Canada each year.
This matters because it means that our alliance is not asking for a tax giveaway. It's actually a way to stimulate the tourism economy because people who come to Canada would, of course, spend money in retail stores, but also at hotels, tourist attractions and restaurants, which don't refund the taxes paid by consumers.
As I mentioned, this is the case in every country that offers tax-free shopping to foreign visitors.
