As the clock ticks down to December 14, when the federal government’s two-month GST holiday comes into effect, Ottawa retailers are racing to prepare for the changes. While shoppers are set to benefit from the exemption, businesses are grappling with the challenge of how to implement the policy and adjust their systems accordingly.
The holiday shopping season is already in full swing, and store owners are working diligently to ensure they are ready for the upcoming tax break. At the heart of the preparations is determining which products qualify for the exemption and how to update point-of-sale (POS) systems to reflect the changes.
At Hintonburg Kids, a local retailer, owner Susie Pearson is gearing up for the tax holiday. “The most expensive item in our store costs $150, so saving the tax will mean nearly $20 off the price after December 14,” Pearson explained. However, she cautioned that customers who wait until the official start of the holiday may risk missing out on popular items. “If they wait, there’s a chance we might not have it in stock by then,” she said.
Pearson also demonstrated how savings would work on a typical purchase. A collection of items including a children’s book, toy, sleep sack, and shoes, priced at $300, would drop to $274.99 after the GST exemption, saving customers $25.
For many businesses, however, the task of preparing for the tax holiday is a logistical and financial burden. According to the Canadian Federation of Independent Business (CFIB), reprogramming POS systems to account for the tax changes could cost small businesses an average of $1,000. Christina Santini, CFIB’s national affairs director, expressed concerns over the complexity of implementation. “While consumers will likely welcome the savings, many business owners fear that the administrative burden could outweigh any potential sales boost,” Santini said.
Local pizzeria owner Lisa Braun of Tennessy Willems echoed these concerns, noting that while the tax break is a win for her customers, it creates significant challenges for her team. “It’s great for our customers, but it’s going to take a lot of work on our end to adjust our systems and processes,” she said.
As the start date approaches, businesses across Ottawa are balancing the benefits to consumers with the operational challenges posed by the new tax holiday. With the clock ticking, the retail sector is preparing for a season of both opportunity and adjustment.
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