'We'll take it:' 2 Windsor-Essex business owners welcome tax holiday that starts Saturday
The entire 13% HST will be waived for 2 months in Ontario
If you still have holiday shopping to do, Saturday's the day to start.
A federal tax "holiday" will kick in this weekend, lasting for two months. It waives the tax on some categories of essential goods, a measure the federal government says is meant to help Canadians battle the high cost of living.
Thought it's a federal measure, in Ontario the entire 13 per cent harmonized sales tax will disappear off categories of items including children's clothing, prepared foods, restaurant meals, toys and book and even real Christmas trees, even though the federal portion of the tax is just five per cent.
"We'll start marketing first thing tomorrow morning that it's available," Richard Peddie, owner of River Bookshop in Amherstburg, told CBC's Windsor Morning. "So yes, I would hope [we see more business]. I mean 13 per cent is pretty significant."
LISTEN: We're just one day away from a litany of goods becoming tax-free
Nicole Sekela is one of the owners of Rock Bottom Bar and Grill. She says that she's heard customers talking about the tax break, but hasn't seen anyone delay dining out in anticipation.
"We've got lots of parties booked already, so I'm hoping more people come out. I hope they take advantage of it," she said.
The tax holiday was announced last month. Shoppers don't need to do or claim the exemption; rather, it will not be charged at the point of sale. The break will be in place until Feb.15, 2025.
Initially, Sekela says she worried about the tech side of it — having to make changes to each individual menu item to turn off the tax. But instead her software allowed her to do it by menu category — sandwiches, beers, etcetera — so it was easier than anticipated.
But, she said, there are items like cocktails that are not tax-exempt, so she's had to educate her staff in preparation for customer questions.
Both Peddie and Sekela agreed the move was largely political — but Sekela says she's still planning to capitalize on it.
"Historically for restaurants, you know, January and February is our slow time. So I guess we'll just take advantage."
At River Bookshop, Peddie says staff were combing through titles one by one until nearly the end of the week to make sure the tax was turned off. It's been a bit of added complexity at an already-busy time of year.
"I think … the whole idea was done by a bunch of people who really didn't understand retail," he said. "The bookshop we have 40,000 titles… available and we had to go through everything.
"So it was a challenge. It's still going to be worthwhile. We've got high unemployment in this area, the highest in in Canada, inflation still really high. There's going to be a lot of people that take advantage of this.
"So, on balance we'll take it for sure."
Here's a list of items getting a tax break:
Food and groceries
- Prepared foods such as sandwiches, salads, platters and pre-made meals.
- Snacks including chips, candy, baked goods, fruit-based snacks and granola bars.
- Energy bars, but only if they are considered to be food by Health Canada are not enhanced by protein, caffeine, vitamins and/or minerals and meets other qualifications.
- Gift baskets, as long as at least 90 per cent of the contents are qualifying food or beverage items.
- Prepared meals and beverages, including delivery, but only when the food establishment delivers the meal.
- Prepared meals delivered by a third party (the delivery cost is not tax-exempt).
Beverages
- All non-alcoholic drinks, such as coffee, tea, carbonated drinks, juices and smoothies, provided they aren't sold through a vending machine.
- Alcoholic beverages such as beer, wine, cider and sake, so long as the alcohol volume is 22.9 per cent or less.
- Spirit mixed coolers and premixed alcoholic beverages with an alcohol volume of seven per cent or less.
- Energy and protein shakes, provided they aren't enhanced with protein, caffeine, vitamins and/or minerals, and provided Health Canada considers them to be a food or beverage.
Restaurant meals and drinks
- Meals purchased at pubs, bars, food trucks or other places serving food and beverages.
- Mixed drinks served in restaurants and bars if they are qualifying beverages — sparkling wine and orange juice qualify, but a vodka and soda does not.
- Tips paid on meals and drinks, but only if they are included in the bill.
- Catering services that provide qualifying food and beverages.
Children's clothing and accessories
- Infant and children's clothes, including accessories such as bibs, blankets, hats, belts, suspenders, gloves and mittens.
- Footwear with an insole length of 24.25 cm or less.
- Some sports clothing, such as jerseys, ski jackets, leotards, unitards and bodysuits that can be worn outside of sports or dance activities.
- Diapers, both cloth and disposable, training pants or rubber pants designed to be used with diapers.
- Children's car seats, provided they meet Canadian safety standards and are not part of a stroller/carrier travel system.
Specialized items of clothing — including wetsuits, soccer cleats, bowling shoes, skates, ski boots and tap shoes — do not qualify.
Children's toys and video games
- Board games and card games, including playing cards and Pokémon cards.
- Toys that involve building, creating or assembling structures.
- Dolls, plush toys and soft toys and their accessories.
- Toys marketed for children below 14 years of age.
- Jigsaw puzzles for all ages.
- Video game consoles and video games for consoles qualify, but downloadable or online-only games do not.
Collectibles — including hockey cards, dolls or other toys marketed to adults — do not qualify.
Books, magazines and newspapers
- Most published books, including guide books and audio books.
- Bound or unbound printed versions of scripture associated with any religion.
- Magazines and periodicals bought with a subscription which have no more than five per cent of their printed space devoted to advertising.
- Newspapers that contain news stories, editorials, features, or other information of interest to the general public and are published daily, weekly or monthly.
With files from Peter Zimonjic