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PM announces agreement on sales tax harmonization
“Our Government is committed to working closely with provinces and territories on their priorities,” said Prime Minister Harper. “Quebec wanted a harmonization agreement, we worked together to make it happen, and it is now in place. This is a fine example of federalism working as it should.”
With this agreement, the Government of Canada is fulfilling the commitment it made in the Speech from the Throne to reach an agreement with Quebec on sales tax harmonization.
Consistent with the harmonization agreements with other Provinces, this agreement provides for harmonization of the tax bases and tax rules for the QST and GST purposes going forward. This means consumers will no longer have to pay the QST on the GST – no more “tax on tax”.
“I am very pleased that we were able to reach a harmonization agreement with the province of Quebec,” Prime Minister Harper added.
