As of January 1st, Canadians are paying less tax due to the Government's second GST cut in less than a year. Since taking office, the Conservative government has reduced the GST from 7% to 5%.

A lower GST means that you or your family will save hundreds of dollars per year on day-to-day purchases alone. If you need to make larger purchases, you'll save even more:

• A family spending $250,000 on a new home will save $3,200 in GST;
• A family spending $10,000 on home renovations will save $200 in GST;
• A family spending $30,000 on a new minivan will save $600 in GST.

This GST reduction is the latest example of Prime Minister Stephen Harper’s determination to support hardworking Canadians by delivering substantial tax cuts.

In the weeks ahead, Canadian families can look forward to even more tax relief as the Conservative Government’s retroactive income tax reductions also take effect.

For the tax year 2007, the lowest personal income tax rate is reduced to 15 per cent from 15.5 per cent. In addition, the amount that all Canadians can earn without paying federal income tax is increased to $9,600 for 2007 and 2008 and to $10,100 for 2009.

Together, these two measures will reduce personal income taxes for 2007 by almost $225 for a single worker earning $40,000. A two-income family of four that earns $80,000 will save more than $400 on their 2007 tax bill.

Thanks to the leadership of the Conservative Government, Canadian families will have more money refunded for last year, more money this year and more money for years to come.