The Government of Canada does not regulate the pricing of goods and services in the Canadian marketplace. Canadian suppliers and consumers are well informed that the rate of the GST changed to 6% from 7% on July 1, 2006. The competitive aspects of the marketplace determine the pricing of goods and services, including the price of products with GST included.
Canadian consumers are aware that the rate of the GST changed to 6% from 7% on July 1, 2006. Given the competitive aspects of the marketplace, consumers should realize real savings from the tax rate cut. For consumers, savings from the GST reduction will amount to approximately $8.7 billion over the next two years.