Actually, I think this will help bussineses. Manufacturers anyway
Right now, GST is basically a wash till you get to the last guy.
When a manufacturer buys raw material, they pay GST on it, when they sell the finished product, they charge GST at the added value. To submit GST to the feds, they take what they charged in GST and subtract what they paid out. This is what they hand the government. Basically, none of their own money. They also charge PST and hand it over as well.
Now when they buy equipment, or put up a building, they pay GST and PST on these purchases. PST exempt does not mean PST exempt on everything. Just get audited once and see how it works out. A side note PST auditors are contracted and paid based on the extra taxes they collect...they always get their time paid for (you think CO's are bad..try a PST auditor)
The PST they pay is gone...money out of their pocket, the GST is just accounted for the same as any material purchase. A wash.
With the HST everything is a wash. They save an automatic 8% on all buildings, equipment, vehichle purchases, leases, everything they now pay PST on.
So, manufacturing saves big time, we the people foot the bill.
Suposedly there will be no HST on housing under $400k. I gotta see how this works, because that would mean no GST either which would be a big savings for a lot of housing.
Somebody please tell me if I am wrong with my assumptions.