Quote:
Originally Posted by Enoch Root
This is precisely the problem, and why the GST was instituted in teh first place. It used to be the case that there were tariffs and taxes on individual items, all different, and none of it fair, or easy to track. One of the primary benefits of a general sales tax, is that it is easily implemented across all industries, and is fair (all industries treated the same.
That's the thing - it is impossible to determine what is a luxury from one product to the next, and no one will agree. Best to have a single standard.
Many of you are probably too young to remember what it was like before the general sales tax - different rules and different tariffs and taxes in every industry.
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Sure...but maybe the best answer is actually somewhere in the middle, and there are certain products/services that should be treated a little differently and that can be done easily (e.g. liquor, fuel, etc.).
We should keep things relatively simple, but it doesn't mean there isn't room for tweaks. IMO the list of GST exempt things could be longer while vice/luxury taxes could be a bit more severe...