Winnipeggers react to GST tax break this holiday season

The GST tax break put in place by the federal government went into effect on December 14^th, meaning consumers will have a little bit of a lighter shopping bill this holiday season, as foods and beverages, children’s clothes and toys, as well as restaurants, are all now exempt from the 5 per cent tax.

READ MORE: Canadians express mixed feelings as federal government’s two-month GST holiday begins

Talking to Winnipeggers out shopping for the holidays, many seem to be on board with saving a little extra cash at the register.

“I think it’s going to be great for kids clothing, you know like, parents can’t afford much this Christmas. So I think it will be great.  It’s great,” said one Winnipegger CityNews spoke to.

Another saying, “I think it’s more expensive most of the year, so it’s really good to reduce some taxes for that because we have more chances for buying something, maybe a gift for someone else.”

A third saying, “I have kids so I can save money on kids stuff, I like beer so I can save some money on beer, I buy food so I can save some money on food.  It’s not a lot, but it’s better than nothing.  I’ve noticed a lot of places are pretty busy, so at the very least people feel that it’s going to be saving money, so you know, stimulates the economy, seems like win-win to me.”

According to MP Rechie Valdez, the federal minister of small business, the tax break is twofold, providing not only relief for consumers but a boost for small businesses as well, especially after the holidays and into the slower months of the year.

“During the holidays, Canadians are out there spending money during the holidays, whether that’s going grocery shopping to come together and have family gatherings, or if it’s just buying for Christmas. So the GST tax break is going to help Canadians afford groceries, winter clothing, holiday essentials, kids clothing, kids toys,” said Valdez.

“It continues right to February 15^th, because it’s going to help having that sustained sales for small businesses. I was with Kelly Higginson (CEO of Restaurants Canada) just yesterday during our announcement, and she indicated that this is going to be a big win. You know that restaurants were the hardest hit during the pandemic, and they’re anticipating a 5 per cent increase in sales, which is about $1.5 Billion of revenue with these changes during this tax holiday. This is very positive not only for Canadians but for small businesses as well. ”