A bond that pays no interest and is initially sold at a discount.

Under the GST, certain categories of goods and services are considered to be taxed at a "zero" rate, rather than at the general rate of 7 percent. Vendors do not charge GST on their sales of zero-rated goods and services. However, vendors are entitled to claim input tax credits to recover any GST they paid on inputs used to produce zero-rated products. As a result, zero-rated goods and services are tax-free. Major categories of zero-rated sales include basic groceries, prescription drugs, medical devices, and most agricultural and fishing industry inputs.