Mr. Speaker, as I explained a few minutes ago, the budget presented by my colleague, the hon. Minister of Finance, provided a number of measures that effectively addressed the needs of Canada's small business community. The reduction in the GST rate on July 1 will leave more money in the pockets of all Canadians. Consumers will have billions of additional dollars to spend in their local stores and to purchase services from their local businesses.
The Canada Revenue Agency expects that most businesses will have no problem applying the reduced rate. Everything that is subject to the GST or the HST today will be subject to the tax on and after July 1. The only change is that businesses will collect and remit at a rate of 6% instead of 7%. The small business community asked for time to prepare for the new rate. The new rate goes into effect July 1, providing two months' lead time for businesses to prepare.
The business community wanted to ensure that information would be available from Canada Revenue Agency. If any questions come up, it is making preparations.