The government should temporarily reduce the GST rate to two per cent from five per cent to support the economy until the recovery is well underway. My research shows that sales tax cuts have been passed onto consumers in the past, and they do lead to a surge in consumer demand.
The Case for a GST Cut as Fiscal Stimulus
The government should temporarily reduce the GST rate to two per cent from five per cent to support the economy until the recovery is well underway. My research shows that sales tax cuts have been passed onto consumers in the past, and they do lead to a surge in consumer demand.