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Canada currently has a Goods and Services Tax (GST) and each province a Provincaila Sales Tax (PST). I think this system is based on the New Zealand system.
Two years ago I asked a manufacturers rep at a motorcycle show, why there is such a large discrepancy between Canadian and US pricing. He told me that our pricing was structured on or about 2000 / 2001 exchange rates, which at the time a US buck cost Cdn's about 1.60! Looking at current prices, I still see similar differences.
Perhaps there is more to it, I don't know. I'm sure if I were to ask the right people the answer would be political tongue in cheek.
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