nexnews – Canada’s two-month GST/HST holiday, aimed at alleviating the cost of essential goods during the holiday season, has generated mixed reactions from both shoppers and businesses. The holiday, which started on Saturday, covers items like restaurant meals, children’s clothing, and toys. However, some people are questioning whether the savings are substantial enough to change spending habits.
Shoppers like Kishore Basu from Toronto believe that the savings from the GST break aren’t significant enough to alter their purchasing decisions. “The GST doesn’t add that much in the end to most of those goods,” he said, adding that he doesn’t see the temporary relief as a major factor in his holiday shopping.
On the business side, Lori Parker, who owns a toy store in Toronto, acknowledged that the holiday could attract more customers due to lower prices, but it also brings added administrative challenges. “We spent a lot of time reading and re-reading what was included in the tax break and what was not included,” she explained. Retailers are finding it difficult to keep up with the list of eligible items, which has led to confusion and extra work for staff during the busy holiday period.
For some, the GST break seems more like a political move than an economic solution. “It’s only for two months, and it’s going to come back. It seems to me more like an election ploy,” Basu added.
Despite the mixed reception, the federal government is hopeful that the tax relief will provide some financial relief for families. The tax break applies to items like children’s clothing, books, and Christmas trees, but certain items such as food from vending machines and sports clothing are excluded. The temporary measure is set to end on February 15, 2025.
While some businesses see the break as beneficial, others remain skeptical about its impact, citing the additional work required to navigate the tax exemptions.
