Some businesses on P.E.I. say the federal government’s pause on requiring the HST to be charged has had little effect on sales, but the true test will come in the six weeks ahead as the shopping season slows down.
Barry Balderston, co-owner of Owls Hollow Toys & Games in Charlottetown, said the tax pause made a “hectic” holiday season even more hectic. That wasn’t just because people were shopping more; many were also unclear exactly what was supposed to be taxed and what wasn’t.
“It was just a hectic time of year for it to happen. That was our biggest problem — but it did help us some. Business is up some, and people were pretty glad to get the break.”
Last month, the House of Commons passed legislation from the minority Liberal government to remove the federal sales tax (as well as the provincial portion from provinces including P.E.I. that have a harmonized sales tax or HST) from Dec. 14 to Feb. 15 on items such as children’ s toys, books, restaurant meals and takeout food.
Sandra Doherty said she hasn’t changed her shopping habits much because of the tax break, but it has enticed her to frequent more restaurants.
“I find I’m eating out a little more, and plan to eat out some more,” she said.
“I’m thinking it’s a little more economical, and in January and February, it’s a nice time to eat out, when there’s not much else happening. So it’s making a difference.”
Some restaurant owners CBC News spoke with said they have not noticed a boost in business since the HST break came into effect.
“It’s always a little bit busier at Christmastime, and that’s definitely been happening,” said Ryan Abdallah, owner of Cedar’s Eatery in Charlottetown. “But in order to try to compare it to another time, it’s still early and hard to tell.”
He’s hoping the tax holiday will lead to a boost in January and February, but he questions how much a difference a short pause like this can really make.
“I’d like to think it’d be nice for the government to do things that do bring more people out, and maybe even more sustainable or long-term, instead of just a two-month break.”
