For Immediate Release
St. John’s, NL - The St. John’s Board of Trade has requested for the refund of the Goods and Services Sales Tax (GST) in the form of a subsidy to small and medium sized businesses that would provide them with a much needed influx of cash in order to combat the economic damage they have faced from COVID-19.
Recently, the Parliamentary Budget Officer released a costing note that showcased an estimated cost of introducing a refund of the GST collected between January 1, 2019 and December 31, 2019 by Canadian Controlled Private Corporations (CCPCs). This note highlighted that the proposed measure would provide an estimated total of $12.9 billion that could be available for CCPCs if the GST was refunded to them.
While a cost-based analysis for CCPCs was included in this estimate, small and medium sized businesses that are not incorporated have not been included. The St. John’s Board of Trade wishes to remedy this with their inclusion. The Board also requests for the refund of the total net GST in the form of a subsidy to provide assistance to businesses.
“The refund of the total net GST is a reasonable way to get money back in the hands of business”, said Andrew Wadden, Chair of the St. John’s Board of Trade. “It is critical to provide support for all businesses, with the inclusion of small and medium sized businesses and not just those that are incorporated. The refund of the net GST through subsidies for business is something they can use right now. This subsidy might be a game changer in the fight to make it through the pandemic.”