A proposal to reduce Canada’s Goods and Services Tax (GST) rate from 7% to 6% was approved in the May 2, 2006 Federal Budget. The new rate, effective July 1, 2006, will have no effect on the Goods and Service Tax Credit, but is expected to have extensive implications to businesses and other entities. In addition, the Harmonized Sales Tax (HST), which applies in 3 territories: Newfoundland and Labrador, Nova Scotia, and New Brunswick, will also be decreased from 15% to 14% effective the same date. (Bill C-13, Excise Tax Act)