GST Masks Provincial Weaknesses

The general sales tax on services was the main driver of provincial tax collections in 2025-26, however, it masks the significant story of provincial collection weaknesses, the general sales tax on services was the primary source of revenue for the provinces, despite this, the provinces are still struggling to meet their revenue targets, this is due to the fact that the tax base is narrow and the tax rates are low, the provinces need to broaden their tax base and increase tax rates in order to increase revenue