While the GST break promises savings for consumers on items such as children’s clothing, toys, books, print newspapers, and some foods, small business owners are voicing concerns about the lack of clarity and the logistical challenges of implementing the changes.
A Stressful Rollout for Businesses
For many small business owners, the abrupt announcement of the GST holiday has caused significant disruption. Ryan Gobeil, a sales and service manager at Eliminator RC in Winnipeg, described the task of identifying exempt items from thousands of products as a “curveball” that adds unnecessary stress during the holiday rush. “We’re going to have to do this manually and bill it all out,” he lamented.
Similarly, Lauren Wittman, co-owner of Riley Grae, expressed frustration over the sudden additional workload. “It’s mid-December, and I have so many other things to do. Dedicating several hours to this was not on my list,” she said.
Ambiguity and Fear of Errors
The GST holiday’s scope has left many business owners guessing. While the government has outlined some exempt items, the full list remains vague, leading to concerns about potential mistakes in applying the tax relief.
Kari England, owner of Toad Hall Toys in Winnipeg, noted the complexity of updating her store’s tax codes. “I’ll be spending my Friday night changing 400 tax codes and hoping I get it right because there’s no time to fix mistakes,” she said.
Dan Kelly, president and CEO of the Canadian Federation of Independent Business (CFIB), highlighted the anxiety among business owners, many of whom fear audits from the Canada Revenue Agency (CRA) if errors occur. “The CRA is not known for being lenient. I’ve had business owners call me in tears, worried about audits and big bills for mistakes they might make,” Kelly explained.
Limited Optimism for Sales Boost
A CFIB survey found that only four per cent of small businesses expect stronger sales due to the GST holiday. For many, the benefits appear outweighed by the operational challenges and fear of compliance issues.
Moving Forward
As the GST holiday takes effect, small businesses across Canada are racing to adapt, navigating unclear guidelines and the added pressures of a busy season. While the tax break aims to bring relief to consumers, its rushed implementation has left many business owners feeling more burdened than supported.
