The Greater Langley Chamber of Commerce welcomes the GST reprieve from the federal government at a time when many residents and businesses are struggling but has concerns about implementation.
"This announcement will provide relief to shoppers as it lifts the five per cent GST on a number of items, allowing consumers to stretch their dollars further and hopefully encouraging more people to dine and shop locally over the two-month window. The Langley Chamber knows soft consumer spending has a negative impact on our members," chamber CEO Cory Redekop said.
Prime Minister Justin Trudeau announced the changes Thursday, Nov. 21.
“The working Canadians rebate of $250 which will be sent to people in April, is going to give people that relief they need, and the tax break over the next two months is going to help on the costs of everything as we approach the holidays, as we get into the new year,” Trudeau said when announcing the rebates and GST relief.
The GST relief applies to an array of goods, many of which people purchase during the holidays, including live and artifical Christmas trees, children's items, candy, newspapers and books, and carbonated drinks. The exemption is in place from Dec. 14, 2024, to Feb. 15, 2025.
Given the long list of items exempted, the chamber is concerned about businesses' ability to change their point of sale technology, saying it will cause an "administrative headache".
"Businesses will need to adjust their point-of-sale systems to reflect the now exempt status, and then re-adjust it back on February 15, potentially creating confusion and a source of conflict. While this may be relatively simple for restaurants and food-service businesses, retailers will need to review the list of now-exempt items," Redekop said.
The GST relief would apply to the affected goods that are delivered to the purchaser, and paid for during the relief period. The GST/HST would also be fully and temporarily relieved on an importation of these same qualifying goods if the goods are imported during the period beginning on Dec. 14, 2024, and ending on Feb. 15, 2025.
The Canadian Federation of Independent Businesses (CFIB) had other concerns, including people not shopping until the GST relief takes effect in mid-December. The lack of consumer demand is currently the top limitation on sales growth for small firms, cited by 53 per cent of CFIB members.
"Canadians need permanent, not temporary tax relief," said federation president Dan Kelly. "Reducing the small business corporate tax rate or payroll taxes like Employment Insurance and CPP premiums are among the top priorities for small business owners."
