GST

GST is a flat rate tax of 15% that is added to the price of most goods and services when you buy them. Everyone pays GST at the same rate when purchasing goods and services, no matter how much they earn. However, because people who earn less spend more of their income on essential goods and services, they end up paying a greater proportion of their income in GST than people who earn more. Economists call this kind of tax a regressive tax.