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GST Debate Forces Consumer Budget Shifts in 1991
The GST will replace the 13 1/2 percent Federal Sales Tax next January, likely inflating prices across goods and services. Analysts warn clothing, footwear, and housing costs will rise, while some products like basic groceries may see varied treatment. Consumers should adjust spending, buying in 1990 for 1991 where advantageous and delaying purchases where GST costs are higher. Mr. Mardon of Investors GroupIn Winnipeg notes housing could see a seven percent increase in sale prices under GST.
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Ottawa
Ernst & Young