The federal GST holiday has begun and is slated to last for two months — and reaction is mixed in Halifax, where shoppers are actually getting bigger savings.
The federal government announced the plan to temporarily waive the five per cent goods and services tax on certain items in a bid to help ease affordability concerns during the holiday season.
Provinces with a harmonized provincial and federal sales tax — such as Nova Scotia — will see the full HST waived.
Janet Merrithew, the owner of Sweet Janes in downtown Halifax, initially wasn’t in favour of the tax holiday. However, seeing the response from customers has led her to change her mind.
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“There was a lot of anxiety when they first announced it,” she said.
“I see on a customers point of view, and I love the fact that we’re able to give that break to our customers. It’s really quite fabulous. The timing was a little scary for all of us, because it is literally our busiest day of the year.”
Items included in the tax holiday include toys for children under 14, diapers, puzzles, books, and some foods.
Chris Green with Atlantic News hasn’t felt the benefit of the tax break at his Halifax business.
“It’s a scheme,” said Green.
“I understand if the government wants to help people in need. I support that. I support paying taxes to provide services. But again, as a business, I plan on this, and for them to come and say, ‘Now, you have to change this during the busiest time of the year’ … it creates headaches, it costs me money.”
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