State finances and industries that compete with imports would be a lot healthier now if John Howard had not decided to exclude exports from paying the GST. The Howard justification was based on simplistic claims that the GST export concession would make our exports more competitive. However, the reality is more complex because general export subsidies like the GST concession encourage offsetting increases in the value of the currency. This post argues that we would be better off if the GST export concession was removed? Continue reading Should the GST be Paid on Exports?