Holiday tax break is a 'pain in the butt' for some Ontario retailers
CTV
Some small businesses in Ontario think the upcoming holiday tax break is a 'pain in the butt' that could potentially cause issues before and after the policy is over.
Some small businesses in Ontario think the upcoming holiday tax break is a "pain in the butt" that could potentially cause issues before and after the policy is over.
Starting Saturday, both the federal goods and services tax (GST) and the provincial sales tax (PST) will be waived for about two months in a bid to cut down household costs amid a high cost of living. The tax break will be applied to a slew of items, from prepared foods, beer and wine, some snacks and restaurant meals to children's clothing and toys, books and video games.
While trimming tax seems like a gift to Canadians this holiday season, one convenience store owner sees this more like a lump of coal for businesses.
"My reaction was they should just eliminate the carbon tax and be done with it, and that this was gonna be a pain in the butt for businesses, and I had to know if they even contemplated or considered that? Because there's a lot that goes int, depending on how your system is set up, there's a lot that goes to adjusting prices or tax codes on a system," Terry Yaldo, owner of Midway Convenience in Windsor and the chair of the Ontario Convenience Store Association, told CTV News Toronto in an interview.
"I know, for me, I was kind of exploring my most effective way, and I might have to actually go item for item and adjust the tax setting to 'no tax,' and then I have to adjust it back in February," Yaldo added.
Dan Kelly, the CEO of the Canadian Federation of Independent Business (CFIB), noted in a post on X that a small convenience store chain estimates spending 16 hours for each of its franchises – a total of 800 hours – to prepare for the GST holiday.
"If there's like, let's say, anywhere from two to 6,000 items, that's very tedious," Yaldo said, but noted not every business operates with the same point of sale systems.
