Temporary HST/GST tax break ends midnight Saturday

Residents have until Saturday at midnight to take advantage of the 13 per cent sales tax holiday before it ends.

Although it offered some relief for consumers over the holiday season, the Canadian Federation of Independent Business says that only 5 per cent of small businesses saw a boost in sales.

Bill C-78, also known as the “Act respecting temporary cost of living relief and affordability” which implemented the tax break, passed its third and final vote in the Senate and received royal assent on Dec. 12, 2024, and went into effect two days later.

The tax break included: prepared foods such as vegetable trays, salads and sandwiches; restaurant meals whether it’s dine-in, takeout or delivery; beer, wine ciders and ready-to-drink cocktails, but not hard liquor like vodka or gin; and children’s clothing, shoes and toys.

Although the tax break is ending for those items, Ontario already offers rebates on items such as books, newspapers, children’s clothes and car seats.

That means residents don’t pay the provincial part of the Harmonized Sales Tax on them, which is 8 per cent.

While small businesses say the break didn’t make a big difference, Restaurants Canada says they saw a boost in dining within the first month of the tax break and an 18 per cent increase in online reservations during the period.

Kris Barnier, vice president of Central Canada for Restaurants Canada, says there is a risk that menu prices could increase with the looming trade war with the United States.

He says permanent HST relief would be beneficial to keep prices affordable.

A Department of Finance official told CHCH News the GST/HST holiday was provided as a temporary measure to provide relief.

“The holiday was provided to help make the season more affordable and to help families enjoy it more fully.”

READ MORE: GST break brought a lot of work but little — if any — gains for businesses