Our Government has become known for getting things done for Canadians and we will continue this commitment as we head into 2008. We are ringing in the new year with a further percentage point reduction in the G.S.T. This reduction will become effective on January 1st, 2008 and will provide all Canadians with additional tax relief.
Since forming Government in 2006, our Government has been providing relief in every way it collects taxes – personal taxes, business taxes, excise taxes, and consumption taxes; totaling more than 60 cuts in taxes. In addition, our Government has been paying off record amounts of debt, controlling spending, and focusing on priorities such as infrastructure, and has made broad tax reductions for all Canadians.
The reduction of the G.S.T. from six per cent to five per cent on January 1st is the second G.S.T. cut in less than two years by our Government. This is a permanent tax cut for all Canadians regardless of age or income. In fact, it benefits people who pay no income tax at all. The total savings from the two percentage-point reduction will amount to approximately $12 billion next year for all Canadians. Individual savings will be significant:
- A family purchasing a new $300,000 home in Dufferin-Caledon will save $3,840 in G.S.T.
- A family spending $10,000 on home renovations in Dufferin-Caledon will save $200 in G.S.T.
- A family spending $30,000 on a new minivan in Dufferin-Caledon will save $600 in G.S.T.
Our Government is establishing a proud legacy of tax relief for all Canadians. This is an achievement we can all be proud of because we are putting Canadians first. We are keeping our promises and managing the economy in an effective and responsible way.