Two months after the Canadian government temporarily reduced the Goods and Services Tax (GST) on holiday-related goods, retailers are reporting mixed results. While some businesses, particularly restaurants, saw a modest increase in sales, others experienced little to no impact. The short duration of the tax break and the limited savings for consumers are cited as contributing factors to the lackluster response.
TORONTO — About two months after the federal government temporarily knocked the GST off a holiday-centric array of goods, Dave Doyon says he considers the move “a gift” even though a hoped-for flurry of sales never fully materialized.
"We all saved a couple of dollars here and there, but did you go to Florida this year because we had this five per cent off? I didn't, so for me, it's too little to do a real impact on Canadian lives." In fact, the relief period announced on Nov. 21 sent the Toronto retailer scrambling during the industry's busiest season to be ready to offer the cut when it was set to kick in less than a month later.
Canadians also seemed to make fewer shopping trips. Payments processor Moneris found the number of transactions across all stores in the country between Dec. 14 and Jan. 15 fell one per cent when compared with the same period the year before. The total spend fell four per cent.
GST Retail Canada Economy Consumer Spending
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada's GST Holiday: A Mixed Bag for Small BusinessesWhile intended to boost consumer spending, Canada's temporary GST holiday presented challenges for many small businesses, leading to confusion and operational headaches.
Read more »
Canada's Holiday Spending Rebounds Thanks to GST Tax HolidayA new report from RBC Economics shows Canadians increased their holiday spending in December after the federal government implemented a GST/HST tax holiday. The tax break, which ran from December 14th to February 15th, targeted goods like toys, alcohol, and restaurant meals. While spending was initially slow, the tax holiday led to a significant rebound in December, bringing total holiday spending slightly above last year's levels. Although spending on certain categories like books and toys remained below year-ago levels, Canadians opted for gifts like entertainment, art, clothing, and jewelry instead.
Read more »
Mixed Reviews as Three-Month GST/HST Holiday EndsCanada's three-month GST/HST holiday comes to an end, leaving local restaurants with mixed experiences. While some report increased business, others worry about the future amid economic uncertainty.
Read more »
Restaurant owners push for permanent GST holiday despite mixed resultsSome Canadian restaurant owners are urging the federal government to make the temporary GST holiday on restaurant meals permanent, citing increased sales and customer visits. However, others haven't seen a significant impact from the tax break.
Read more »
GST Holiday Provides Mixed Results for B.C. BusinessesWhile some businesses saw an increase in sales, others reported minimal impact or even a decline in revenue during the two-month GST holiday. The Canadian Federation of Independent Business (CFIB) found that only five per cent of small businesses across Canada experienced stronger sales in January compared to the previous year.
Read more »
GST/HST Holiday Impact: Mixed Results and Business FrustrationsDespite the federal government's two-month GST/HST tax holiday, intended to provide Canadians with relief on essential goods, some experts and businesses report minimal impact. While spending saw a slight increase, the program's effectiveness in boosting savings remains unclear. Many businesses faced challenges adapting to the complex tax-free item lists, leading to confusion and added workload.
Read more »