Canada - GST Savings Not Found in City Services

The cut in the Goods and Services Tax will not result in savings in City of Ottawa services.

Manager of Revenue Ken Hughes says municipalities don't remit GST on services back to the Federal Government.

Hughes says everything a municipality does, it doesn't charge the GST on taxes, adding all municipal activities are GST free.

The GST dropped to 5% on New Year's Day.

Hughes says the City of Ottawa drew on experience from the last GST cut to 6% in 2006 for a smooth transition this time.

Source : 580 CFRA Radio - Ottawa, Ontario, Canada, dated 03/01/2008