What are the benefits for consumers as a result of harmonization?
Consumers will see lower prices as a result of the substantial elimination of the embedded taxes on business inputs (the tax paid by businesses on business purchases). They will see lower taxes as a result of the reduction in the combined tax rate from 18.77 per cent to 15 per cent. They will also benefit from increased employment opportunities as a result of increased economic activity and enhanced competitive advantage. At the retail level, they will find that the shelf price of an item is the same price they will pay at the cash register (tax-inclusive pricing).
