Small businesses are voicing strong opposition to the federal government’s proposed two-month GST/HST holiday, according to the Canadian Federation of Independent Business (CFIB).
A recent survey of more than 3,500 small firms revealed concerns over the timing, costs, and implementation of the plan.
The survey found 75 per cent of businesses expect the holiday to be costly and complicated to administer, with a median cost of $1,000 to update point-of-sale systems. Additionally, 71 per cent believe large corporations and online retailers will benefit most, while 66 per cent think consumers will delay purchases to take advantage of the tax exemption.
The tax holiday applies to retailers, restaurants, manufacturers, and distributors of qualifying items, with businesses required to exempt sales taxes during the period. Many businesses expressed concerns about insufficient preparation time and a lack of clarity on which items qualify.
The CFIB has called on the government to provide small businesses with a $1,000 credit to offset costs and ensure good-faith errors during implementation are forgiven by the Canada Revenue Agency. The organization also suggests the government prioritize permanent tax reforms over temporary measures like the holiday.
The proposed GST/HST holiday comes as businesses are already navigating the challenges of the busy retail season, leaving many questioning its effectiveness and timing.
You can find the full survey findings on the CFIB website.
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