Once the measure passes in Parliament, starting on December 14th, there will be a pause on the collection of GST on a number of items. The move, which will go until February 15th, was announced by the federal government Thursday. The pause will be for items such as groceries, restaurant meals, and children’s clothing.
For many, they are looking forward to the tax relief, something which the Weyburn Chamber of Commerce noted can help to boost consumer spending. However, there are some issues that could come up.
“We share concerns about the administrative burden this short-term measure could place on small business owners,” the Chamber said in a release. “Implementing these changes within a tight timeline may strain their already limited resources.”
The Chamber also raised the concerns about the cost of the initiative. It is estimated the reduction in the GST for the holiday season, along with a $250 payment to everyone who worked in 2023 and made less than $150,000, will cost $1.6 billion, noting that the long-term impacts could have costs for Canada into the future.
“We urge the federal government to explore sustainable tax relief measures that provide meaningful, long-term benefits to Canadian families and businesses,” the release continued. “eliminating the federal carbon tax program could reduce operating costs for businesses, and help families save on monthly energy bills, fostering lasting economic growth in our community.”