Almost a week into the GST holiday, retailers and restaurant owners appear on track for a sales boost despite some of the struggles they faced implementing the temporary break.
BMV Books owner Patrick Hempelmann says he's seen an uptick in sales since the tax break began, particularly on higher-priced items.For two months, a slew of items including children’s toys, snacks, wine and restaurant food are GST- or HST-free, depending on the province.
"For a lot of retailers, it's shifting the buying patterns, but I think overall they're seeing a net increase," he said. But even with November's decline, Canada is likely on track for a slight uptick in per-person retail spending in the fourth quarter for the first time since mid-2022, she wrote. Beer is tax exempt, as are premixed drinks below seven per cent alcohol by volume. Wine, cider and sake below 22.9 per cent are also exempt. But liquor is not, meaning a cocktail or mixed drink made at a bar would not qualify for the tax relief.
"I think this is going to really be impactful during that January, February period where people will be able to spend a little bit more," she said."There has been a fairly significant spike since this started," said Paul Bognar, president and chief operating officer of Service Inspired Restaurants, which operates numerous restaurants, including Jack Astor’s and Scaddabush.
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