TORONTO – The Canadian Federation of Independent Business is asking the federal government to compensate small businesses for the costs to implement the two-month long GST holiday.
The organization wants the Department of Finance to give affected small firms a credit of at least $1,000 in their GST/HST accounts to cover the costs to reprogram point-of-sale systems to remove and then reinstate the tax.
CFIB president Dan Kelly says small businesses – particularly those in retail – do not have the time or resources to make the changes to accommodate the temporary change and few believe there will be any net benefit.
Kelly says an online survey conducted by the CFIB found a majority of small firms opposed the planned tax holiday.
He says only four per cent of small business owners said they believe they will have stronger sales as a result, while 66 per cent said it will simply shift sales into the tax holiday period.
The federal Liberals announced the proposed GST holiday last week on a list of specific goods including items such as prepared foods at grocery stores, some alcoholic drinks, children’s clothes and toys, Christmas trees, restaurant meals, books and video games. It is set to begin Dec. 14 and last two months.
This report by The Canadian Press was first published Nov. 28, 2024.
