Retail organizations are applauding a move to temporarily stop charging the federal sales tax on many items, but say the decision means some businesses have their work cut out for them.
The vice-president of federal government relations for the Retail Council of Canada says omitting GST charges on toys, groceries, books and more from Dec. 14 to Feb. 15 will be simple for some shops but laborious for others.
Matt Poirier says businesses of all sizes will have to trawl through their lists of products to determine which ones need to have the tax removed.
Once they’ve identified the right products, he says they will have to reprogram point of sale software and terminals and then prepare to reverse the changes two months later.
Poirier says the process will be a headache for some stores, especially because they had little notice, but the retail council believes it will be worth it because GST cuts will drive traffic to stores at the start of the year when sales typically slow.
Restaurants Canada also felt the move would be positive for retailers, which it predicted will now see increased spending all the way through Valentine’s Day.
