Small business owners concerned about qualifications for grocery PST tax break

While Manitobans will be seeing the PST lifted on all grocery items coming this summer, certain convenience stores like Bliss and Basket in Winnipeg won’t qualify for the tax break, and it has owners questioning how it will impact their businesses.

Stores that won’t be able to implement the tax break, according to the province, are ones located in a city, that hold a tobacco license, and are less than 280 square metres in size, equivalent to just over 3,000 square feet.

“It’s not good for my business and all of the small businesses in the city,” said Seyed MirAhmadi, the owner of Elice Avenue Deli Store.

Ahmidi’s Ellice Avenue Delo Store falls under the criteria, meaning he won’t be able to lift the tax. He’s already worried about the ramifications for his customer base when the policy kicks in on July 1.

“Some of my customers have come here and are asking me, ‘Will you be charging me for the tax or not?’ I said, ‘I’m not able to do that because the grocery stores under 3,000 square feet can’t do that,’ and actually, my store is 1,200 square feet.”

He says he’s already seen a steady decline in business as the price of groceries skyrockets, and consumers are pinching pennies more than ever. Without being able to offer the tax break, he fears it will get worse.

“Small businesses will lose customers with this plan because the people are encouraged to go to the bigger store [for] shopping,” said MirAhmadi.

CityNews reached out to Minister Adrien Sala, who said in a statement that, “Manitobans told us their top priority was to make groceries less expensive during these challenging times. That’s exactly what we’re proposing to do. While we continue to consult with industry on implementation, all businesses can eliminate the sales tax and pass on savings to consumers for all items bought at the grocery store.”