Has the GST tax ‘holiday’ helped businesses 1 month in? What retailers say

While some report seeing increases in sales, others suggest the tax holiday has gone over 'like a lead balloon' for businesses worried about keeping track of tax rules.

The federal government’s GST tax “holiday” has been in place for a month and businesses say they’ve seen mixed results when it comes to increases in sales.

The “holiday” was announced in late November and goes from Dec. 14 to Feb. 14, with items such as children’s toys, restaurant food, snacks and wine free from either the government sales tax (GST) or harmonized sales tax (HST), depending on the province.

Restaurants Canada said they’ve heard in surveys of members about a boost in sales ranging from seven to nine per cent, and an increase in reservations as well.

The organization represents nearly 100,000 foodservice businesses.

Kelly Higginson, president and CEO of Restaurants Canada, said the boost has been apparent both during the holidays and after.

“Not only are we seeing an increase, but we’re seeing it at a time of year that is really unpredictable and very challenging for our operators, again, and going into the January and February months that can be particularly tough as well,” she said.

Higginson noted despite the holiday season, the last two weeks of December can still pose challenges for restaurants’ bottom line given holiday closures, bad weather and other issues.

According to estimates by Restaurants Canada’s chief economist Chris Elliott, the tax change is expected to generate an added $1.5 billion in sales for the restaurant industry by the time it ends next month.