GST IS NOW 6%

[SBonner]

I just finished re-programming eight restaurant POS systems this evening to reflect the change in tax. Keep an eye on your restaurant receipt. GST is now 6% instead of 7%.

For our international readers...this applies only to Canada where our generous PM decided to save us some money...whatever

Cheers,

Stephen Bonner

Edited July 1, 2006 by SBonner (log)

[stovetop]

Hey SBonner:

How long will it take business' to recover from the costs of changing accounting systems regarding that 1% change in the GST?

All POS sytems and all year end sytems and daily monthly book keeping all have to be changed and is this retroactive and if not who keeps track of the variable rates and for business what about the GST payed out- what about thoses two variables if things are not retro. Boy that is a lot of data.

If I still had my business I would let the government come and get their GST- have the money waiting-check in hand; but let them fiqure out their own accounting.

What are we- banks???

just a thought

steve

[Vancouver]

Seems that our drink prices may go up though: http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories

Cheers!

[Ducky]

GST is now 6% instead of 7%.

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Must be a slow news day! I mean does anybody care?

Portugal has upset England, and France has upset Brazil - and Canada has reduced GST by 1%. Wow!

[fud]

Must be a slow news day! I mean does anybody care?

Portugal has upset England, and France has upset Brazil - and Canada has reduced GST by 1%. Wow!

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True! But we just bought a new townhouse and 1% on a townhouse is a LOT of money

But in all seriousness. The logistics and converting all systems to 6% GST could be a nightmare. Unless of course the software used in stores and restaurants let you change the tax like you can change the time. I'm assuming it was that easy?

[Pam R]

A 1% drop in tax may not seem like much, especially on small-ticket items like a meal out (vs. a car or house) but I'd still say it's important news. Especially for people in the industry.

Every cash system needs to be changed - and most of that is a simple re-programming. On our system, it's a one step process. But for larger operations - or people who just can't do it themselves - it involves bringing in the POS support team to do it.

As consumers we may not notice it when we buy an ice-cream cone - but it's on the minds of every operator in the country.

[gourmetgal]

How long will it take business' to recover from the costs of changing accounting systems regarding that 1% change in the GST?

I heard on the news that it would cost the average business approx. $500.00 to make this 1% change. I am pretty sure that the figure doesn't include the loss that a business may be facing due to stock on hand (bought with 7% tax), which they must sell now with a 6% tax. A penny here, a penny there...it all adds up.

[bigdaddy]

I am pretty sure that the figure doesn't include the loss that a business may be facing due to stock on hand (bought with 7% tax), which they must sell now with a 6% tax. A penny here, a penny there...it all adds up.

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[kontemporary]

"Beer and wine are to be taxed on a flat, per litre basis. So, cheap lagers will be taxed the same as expensive imported ales."

Good thing, no?

[bigdaddy]

"Beer and wine are to be taxed on a flat, per litre basis. So, cheap lagers will be taxed the same as expensive imported ales."

That just means that consumers won't see a decrease in price despite the gst reduction. The excise taxes on tobacco and alcohol are being increased specifically to offset the 1% gst drop. Those tax increases will be added to the price of the product before gst, resulting in no savings...and possibly even higher prices.

Edited July 3, 2006 by bigdaddy (log)

[kontemporary]

That just means that consumers won't see a decrease in price despite the gst reduction. The excise taxes on tobacco and alcohol are being increased specifically to offset the 1% gst drop. Those tax increases will be added to the price of the product before gst, resulting in no savings...and possibly even higher prices.

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But shouldn't there be potential savings since the flat excise tax increase to offset the 1% be less than the GST reduction? 1% on say an overtaxed expensive wine import can't possibly be made up in a flat tax comparable to a cheap lager..

And if that's the case anyways, then really it's hurting people who drink beer.

[Stinky Cook]

I've noticed that my morning coffee at my local haunt is a few pennies less. Yet i still pay the sam rounded figure of $4. I know it's only a few pennies, but it is likely this happens with other customers too, especially a coffee joint where high volume is in play. I wonder if some people will benefit via tips from this drop in GST.