subject: Information On Goods And Services Tax [print this page] If you are one of the many who are wondering what Goods and Services Tax stand for, then it is about time to learn. This is simply a replacement of the Value Added Tax (VAT), excise duty tax, service tax, manufacturer's sales tax, and other tax schemes. It seeks to simplify all types of tax into one structure. The implementation of this tax structure differs in every country but with the sole purpose of helping the nation's budget. GST is commonly imposed on the goods and services sold to consumers.
Not all products are levied with GST. Some countries exempt essential goods and services from the GST. Every country with GST imposes the tax on different products. GST information on countries such as Canada, Singapore, Australia and New Zealand are listed below.
GST is introduced to Canada in January, 1991 by Prime Minister Brian Mulroney. The tax replaces the MST or Manufacturer's Sales Tax. The products that are exempted with the GS tax are residential rent, medical services and grocery items. Tourists are not obligated to pay the GST. When they enter the country and buy services and goods to be brought home, they get a refund on the GS tax added to it. They will just have to file for refund before they go home. The current GST rate of Canada is 5%.
In Singapore, GST is introduced on April, 1994 by the government upon the recommendation of the Economic Review Committee that Singapore must lower down their high rates of taxes. The GST tax is Singapore's Value Added Tax and the tax is levied on almost all goods and services except the residential property sales and rents. Export goods are also zero-rated to enhance Singapore's competitiveness in the global economy. The current GST rate of Singapore is at 7%.
On July 2000, the government of Howard in Australia introduced the GST to Australian citizens. The GST in Australia replaced the different tax forms used by the government such as Banking taxes, stamp duty and Federal sales tax system. It's also the value added tax of Australia and it is imposed on various products for consumers. Australia's GST is 10% at present.
In New Zealand, GST is introduced on October, 1986 by their government. It is their Value Added Tax and it is levied on all goods except rents on properties, financial services and donations. All exported goods and services from New Zealand are also tax-free.
Some individuals do not go for the Goods and Services Tax because of the burden it adds to the everyday expenses of the people. GST levied on products increases the prices of the products making it hard for people that earns below the minimum wage. Despite the controversies behind the GST, it is still being used for many years because it has benefited the government.
Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided "AS IS", and all warranties, express or implied, are disclaimed by the author.
