The GST credit Raj K. Chawla
- In 2002/2003, the federal government collected $30.6 billion from the GST (goods and services tax). The GST accounts for 70% of consumption tax revenue and 16% of federal government revenue. The government returned $2.9 billion in GST credits to 9.1 million persons aged 16 and over in 7.5 million economic families.
- Almost two-thirds of those receiving a GST credit were major income recipients of economic families (including unattached individuals). Children still living with their parents accounted for another 21%. Although credits are designed to soften the burden of GST for families with lower incomes, only 26% of the total credit went to low-income families.
- Families with a GST credit received an average of $389, which represented 5% of their total government transfers or 1% of pre-tax income. Thus the GST credit has only a minimal effect on the redistribution of income.
Full article: HTML | PDF
Author
Raj K. Chawla is with the Labour and Household Surveys Analysis Division. He can be reached at (613) 951-6901 or perspectives@statcan.gc.ca.
You need to use the free Adobe Reader to view PDF documents. To view (open) these files, simply click on the link. To download (save) them, right-click on the link. Note that if you are using Internet Explorer or AOL, PDF documents sometimes do not open properly. See Troubleshooting PDFs. PDF documents may not be accessible by some devices. For more information, visit the Adobe website or contact us for assistance.
|