One week in, Toronto businesses say GST holiday has been tricky
The GST holiday initiated by the federal government has been in effect for a week now, and Toronto businesses are facing challenges in adapting to the changes. Christina Kotiadis, the owner of Lemon & Lavender, a retail store in Bloor West Village, expressed concerns about the confusion surrounding the tax break. She mentioned that different businesses have varying interpretations of which products are eligible for the tax exemption, leading to anxiety about incorrectly marking items and customer confusion.
The Canadian Federation of Independent Business (CFIB) reported that most small businesses were not in favor of the tax holiday before its implementation. Only four percent of small business owners believed that they would experience stronger sales due to the tax break. Concerns were raised about the costs of reprogramming point-of-sale systems and the limited time available to implement the changes.
CFIB President Dan Kelly stated that the tax holiday has been a challenge for most small businesses, particularly those with a wide range of products. He emphasized the need for a more tailored approach that considers the specific needs of each sector. Kelly highlighted that restaurants have found it easier to integrate the changes compared to retailers, as most items in restaurants are now tax-exempt.
Dawn Chapman, the owner of Lazy Daisy’s Cafe, shared a more positive experience, noting that customers seemed inclined to spend more due to the tax break. She expressed hope that the GST holiday could become an annual tradition, encouraging increased consumer spending. However, Chapman also emphasized the necessity of clearer guidelines for businesses and easier implementation processes.
On the other hand, Megan Munro, the owner of Caribou Gifts, found the implementation of the changes to be labor-intensive and questioned the benefits of the tax holiday for her business. She expressed skepticism about the impact on driving additional customers to her store, particularly after the holiday season.
As the holiday season progresses, some business owners like Munroe and Kotiadis are unsure about the long-term effects of the tax break on their sales. They believe it is too early to determine the extent to which the tax holiday is driving customer traffic. The GST tax holiday is scheduled to end on February 15, 2025.
In conclusion, the GST holiday has presented both opportunities and challenges for Toronto businesses. While some have seen a positive impact on sales, others remain skeptical about the long-term benefits. The implementation process and clarity of guidelines continue to be key concerns for business owners as they navigate through this period of transition.
