GST/HST Tax Break Ends Saturday at Midnight – What to Know

The GST/HST holiday tax break expires at midnight on February 15, meaning Ontarians will once again have to pay up to 13% in taxes on numerous purchases.

Businesses gave the two-month tax exemption mixed evaluations, with some finding the rollout difficult and time-consuming, while others reported a minor increase in sales.

According to retail analyst Bruce Winder, many people work hard for little pay.

"You know it didn't really move the needle significantly," Winder informed me.

Winder stated that after the two-month tax holiday, he would give the federal incentive a passing grade, but only barely.

"I'd give it a C-minus, maybe a D. It sounded fantastic on paper, but it was difficult to implement, and stores did not have time to put it together. "There was a lot of confusion, and not much happened in terms of a retail sales boost," Winder said.

According to the Canadian Federation of Independent Business, only approximately 5% of small enterprises increased their revenues over the same period last year.

The restaurant business benefited the most from the tax holiday, with transactions up 7.6 percent as millions of Canadians dined out and paid no taxes.

"We are really delighted with the results, which are solid in all categories. Restaurants Canada's President and CEO, Kelly Higginson, stated that sales, average checks, foot traffic, and job growth have all increased.

Restaurants Canada informed CTV News Toronto that the tax policy helped create 34,000 employees and generated an additional $1.5 billion in sales.

The association is urging the federal government to continue the tax break to help Canadians and the restaurant business.

"We advocate for the elimination of GST on all goods, prepared foods, including restaurant meals. "There is no need for a GST on food at a time when there is an affordability crisis," Higginson stated.

Key Things to Know Before the Tax Break Ends

The tax exemption expires on Saturday, February 15, at midnight. Until then, you can avoid paying taxes on restaurant meals, prepared foods, some snacks, beer, wine, and cider, children's clothing, footwear, diapers, car seats, toys, games, and dolls.

The end of the federal tax holiday comes as Canadians face uncertain times with the United States and concerns about impending tariffs. Winder expects people to remain cautious.

"It's just a really tough time for Canadians to get out there and spend a lot with the headwinds and the turbulence coming up [with the U.S.]," Winder told reporters.

Businesses are concerned that they may have made blunders when implementing the tax break. The Canadian Federation of Independent Business is urging the Canada Revenue Agency to be generous with penalties because there was such a rush to implement the program.