<P> During the election campaign, Chrétien promised to repeal the GST, which the Liberals had denounced while they were the Official Opposition, and replace it with a different tax . Instead of repeal, the Chrétien government attempted to restructure the tax and merge it with the provincial sales taxes in each province . They intended to call it the "Blended Sales Tax", but opponents quickly came to derisively call this proposal the "B.S. Tax", and the name was changed to Harmonized Sales Tax before its introduction . However, only three Atlantic provinces (Nova Scotia, New Brunswick and Newfoundland and Labrador) agreed to go along with this plan, joined by British Columbia and Ontario in 2010, and Prince Edward Island in 2013 . British Columbia later repealed the tax . </P> <P> The decision not to abolish or replace the GST caused great controversy . Liberal Member of Parliament (MP) John Nunziata voted against the Liberal government's first budget and was expelled from the party . Heritage Minister Sheila Copps, who had personally promised to oppose the tax, resigned and sought re-election . She was re-elected with ease in the subsequent by - election, as was the Liberal government in the 1997 election . </P> <P> On July 1, 2006, the Government of Canada reduced the tax by 1 percentage point (to 6%), as promised by the Conservative Party in the 2006 election campaign . They again lowered it to 5%, effective January 1, 2008 . This reduction was included in the Final 2007 Budget Implementation Bill (Bill C - 28), which received Royal Assent on December 14, 2007 . This change has been estimated to have decreased government revenues by approximately $6 billion . Opponents of these tax decreases cited that sales taxes target those who spend more and therefore such reductions disproportionately benefit Canadians giving those who have the most and spend the most the largest tax decrease . </P> <P> Much of the reason for the notoriety of the GST in Canada is for reasons of an obscure Constitutional provision . Other countries with a Value Added Tax legislate that posted prices include the tax; thus, consumers are vaguely aware of it but "what they see is what they pay". Canada cannot do this because jurisdiction over most advertising and price - posting is in the domain of the provinces under the Constitution Act, 1867 . The provinces have chosen not to require prices to include the GST, similar to their provincial sales taxes . As a result, virtually all prices (except for fuel pump prices, taxi meters and a few other things) are shown "pre-GST", with the tax (or taxes) listed separately . </P>

When did gst go from 7 to 5
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