Statistics Canada's input - output figures for 2002 indicate that, in the five provinces combined, harmonization would have reduced business payments by $ 1.6 billion on capital inputs, $ 2.3 billion on intermediate inputs (like office supplies), and $ 2.3 billion on construction supplies. (progressive-economics.ca)
In Canada, the five provinces that levy retail sales taxes generally offer some exemptions for capital inputs, particularly for machinery and equipment used in manufacturing, that substantially reduce the effective sales tax rate on capital goods in the manufacturing sector. (progressive-economics.ca)
Labour productivity can be boosted by a rise in capital input relative to labour input. (rba.gov.au)