The Liberal’s two-month GST and HST holiday, meant to offer financial relief to Canadians, is causing a great deal of confusion among small and medium-sized businesses across the country.
According to Dan Kelly, CEO of the Canadian Federation of Independent Business (CFIB), the rollout of the tax break has been chaotic.
Businesses are grappling with uncertainty over whether the holiday is mandatory, how to implement it, and how to handle consumer inquiries about the changes.
“It’s a giant mess,” Kelly told CTV News.
Kelly said he’s been in discussions with officials in Ottawa to clarify the issues, and has been told that strict enforcement is not the immediate priority.
“It’s legislated. It is supposed to be mandatory, but basically, the government —CRA and finance — are saying, ‘We’re not planning to rigidly enforce this. So do your best,'” he said.
For example, much confusion exists for toy store owners, who have thousands of inventory items, but only some of which apply for the tax break. The confusion has already resulted in confrontations at checkout points, causing distress among retail staff.
Meanwhile, large businesses like Coke and Pepsi have both issued statements indicating they won’t be participating in the scheme.
Some small businesses have posted signs on their stores indicating they will donate 5% to a charity in lieu of figuring out which items they need to adjust prices to, and which ones don’t need an adjustment.
Polls remain the same
The federal Conservatives remain projected to win a majority government three weeks after the Trudeau Liberals announced their two-month GST pause on things like diapers, candy, and toys.
Prime Minister Trudeau recently touted his GST pause on X, only to get a community note attached to his post, which informed Canadians that most essential grocery items are already exempt from GST.
