Hasn't the hotel industry been complaining about being zero rated? Seems that this complaint was based on some idea that being inside the GST system would be a benefit. Would like to see a spreadsheet showing the actual change in the vendor's bottom line after credits for GST spent are factored in. Not saying what the result would be because I haven't done the math yet - but curious as to what the numbers will show.
My sense is that a sales tax is ok - but that it should not exceed something like 5%.
When the numbers get too high, compliance goes down. When taxes are too high we all strangle.
Business tax of 1.75% is generally tolerated and we're told compliance is good.
Lower taxes and universal enforcement of payments - that's what I'd like to see.