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(Ottawa, May 2, 2006)… As expected in today's Federal Budget announcement, the Goods and Services Tax (GST) will be reduced by 1 percentage point to 6% effective July 1, 2006.

The reduced GST rate of 6% will apply to the importation of all taxable goods released from Customs on or after July 1, 2006.  Shipments released by Customs prior to July 1, 2006 will be assessed GST at the current rate of 7%.

Following is a link to the Canada Revenue Agency's "Reduction in the Rate of GST/HST - Questions and Answers" of May 2, 2006:
www.cra-arc.gc.ca/agency/budget/2006/gstrateqa-e.html

For more information, please call (905) 882-4880, Brian Rowe, General Manager – Customs Consulting Services.