GST relief announcement generates mixed reaction in B.C.
While Canadians no doubt welcome the announcement that the federal government is giving most residents a GST break over the holidays, B.C.’s local small business community has concerns about how this will work during the busy season. “Any time the government wants to cut taxes, that’s a good thing,” Dan Kelly, president, CEO and chair of the Board of Governors of the Canadian Federation of Independent Business told Global News. “At the same time, this comes with a whole bunch of administrative complexity and questions and uncertainty that small business owners will be grappling with.” 1:17 Reaction in B.C. to temporary tax break, $250 rebate cheque Kelly said some businesses will have to reprogram their point of sale machines, twice and navigating the list of products that are part of the exemption could be confusing. Story continues below advertisement “We’re already getting questions about which products are in or out,” he added. “And then, of course, there is the administrative process that most small business owners do themselves. They try to adjust their point-of-sale machines to apply or take off taxes, depending on what is in place.” Get daily National news Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day. On Thursday, the federal government announced it will introduce legislation in Parliament to provide for a two-month GST and HST break for groceries and holiday essentials. If passed, the exemption would last from Dec. 14, 2024 to Feb. 15, 2025. Some of the goods that would qualify include children’s clothing, footwear, diapers, car seats, print newspapers, books, Christmas trees, food or beverages including alcoholic beverages, carbonated beverages, candies, chips, granola products, fruit bars and more. Here is a full list. Trending Now “Will it have a big impact? No, it won’t. Will it have a little impact? Yes, it will,” Ian Tostenston with the BC Restaurant and Food Services Association told Global News. 2:19 Federal government launches multi-billion dollar affordability programs In a statement, Restaurants Canada said it is pleased by the announcement as more than half of restaurants are operating at a loss or just breaking even, up from 12 per cent pre-pandemic. Story continues below advertisement “Today’s announcement restores some much-needed hope to our industry and we are optimistic it will translate to increased spending at local restaurants across the country,” the organization said in a statement. “Today’s announcement by the Prime Minister means that more Canadians will be able to celebrate with loved ones at a restaurant, have lunch with colleagues or treat themselves to a morning pastry on their way to work.” © 2024 Global News, a division of Corus Entertainment Inc.
