Start of GST/HST holiday gets mixed reception from GTA shoppers, businesses

The federal government's GST/HST holiday kicked off Saturday, and while some in the food industry hope it will lead to a boost in sales, shoppers are unsure whether it will encourage them to spend more. 

The tax break removes the GST on prepared food, toys, some types of alcohol and other holiday season staples.

In provinces like Ontario, where the provincial and federal sales taxes are blended together into a harmonized sales tax, the entire HST will be removed from such items. 

Some people shopping in Mississauga on Saturday said they welcome the savings but didn't think the tax break would make a significant difference for their wallets. 

Anna Fonscea said she's thinks the affordability issues people are facing need more long-term solutions. 

"It's not gonna solve the issue, especially when people are having so many difficulties now. It's just a quick fix for Christmas basically," she said. 

She said she's already on a tight budget so the tax break won't encourage her to dine out or shop more, either. 

"I mean, this is only good for two months and then after that, who knows what's gonna happen? Then might prices might go up." 

Roman Wojnarski said he wasn't sure if the tax break would lead to more shopping or dining out, but supported the initiative. 

"I think right now the economy is such that this is going to be a bit of relief for a lot of people."

WATCH | How the GST/HST holiday works: 

Industry group Restaurants Canada estimates the tax holiday could lead to an additional $1.5 billion in sales for restaurants across the country. 

It's a much needed win for the restaurants which usually see a dip in revenue after the holiday season and often operate on a razor-thin profit margin, said Kelly Higginson, president and CEO of Restaurants Canada. 

"It really does help them with that stability and predictability over the two-month period."