herbie wrote:
Example:
Say the sawmill buys a new blade today. They pay 7% sales tax on the blade because it's used at the mill, not resold to someone else.
After July they'll charge 12% HST on everything they sell that month, deduct the 12% HST on everything they bought that month and remit only the difference. So they get that 7% back a month later. More or less.
People who buy a lot of things for expansions and day to day running will save somewhat. Until the last month they operate when they stop buying.
My customers will see no difference buying a computer part. But they will now pay 12% instead of 5% for a virus-cleaning, a tune-up, a diagnosis. Only business customers will get to claim it back. Joe Public gets hosed another $10..
I understand your example, but I can't see how that is good for the whole industry persay. It is only good for the period now, till it is installed. And that is for every business. What after that? We will all pay. That means we all have 5% less to spend. I can't see that is good... But hey, who am I

From what I understand, a lot more things that Sawmills Buy are subject to PST and not GST. So they'll have fewer times being Taxed.