The Goods and Services Tax should be applied to food, with the revenue given to farmers to help save the struggling industry, a farm group says.
The Agricultural Institute of Canada – a group dedicated to farming research and education – believes adding the seven per cent tax to what we eat will help farmers.
"Farmers produce way more than they used to ... and yet they still can't stay in business," said Hugh Maynard, who has written a report on the issue.
"The long-term trend is that the price of food is going to continue to go down ... as the capacity to produce increases."
The GST is applied to most goods and services but not basic groceries, most medical services and devices, prescription drugs, residential rents and exports.
Monday, October 31, 2005
Posted by David MacLean at 9:59 AM
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