Brockville, Ont. businesses seeing impact of holiday tax break

Tax holiday heading into 2025 Some eastern Ontario businesses are seeing a spike in business as the federal government's tax holiday continues. Jack Richardson reports.

The federal government removed GST and HST on specific products for the holiday season earlier this month and businesses are getting their first chance to see its impacts.

At Luella Charlotte Baby Boutique in downtown Brockville, Ont., roughly 50 per cent of their products qualify under the tax break, which led to a pre-Christmas boost.

"When we saw it go into effect, we did see a spike in sales," said owner Sarah McGuire. "I expect that it'll continue into what are typically our quieter months of January and February."

Luella Charlotte Baby Boutique sells items that are high quality, so the lower prices were enticing for customers, but the best part for the store is how long the tax break will be in effect.

In place until Feb. 15, the tax holiday should allow them to maintain steady revenue through January and February. That's usually a time where business struggles, according to McGuire.

"We typically scrape by as a small business, we pay our rent, we pay our employees," McGuire said. "I feel like this might help allow us to order more products for the spring."

Some businesses like restaurants, however, are not seeing the same results.

At Karra's Burger & Fries, a takeout restaurant in the city's north end, nearly every item on their menu falls under the exemption.

"Basically, everything is tax free," said co-owner Corey Morpaw.

Morpaw says his business has been more or less the same since Dec. 14.

"Honestly I haven't noticed really any difference, it's been the same consistency. I don't really hear any customers talking about it or anything," he said.

Morpaw says business is usually slower around the holidays. but unlike McGuire, they don't expect a boost from the tax break.

"The next two months are our slower times, but honestly there's been no change really," he said.