Mixed reaction from Ottawa business owners, customers on GST exemption

Mixed reviews for GST tax cut Ottawa business owners and residents are reacting to the federal government's GST tax break this winter. CTV's Kimberley Johnson reports.

Business owners say they've been left with questions about how a temporary tax exemption to the GST will work after the federal government announcement the policy earlier this week.

Prime Minister Justin Trudeau announced the new measure to provide relief to Canadians still dealing with cost-of-living concerns. The tax break, which still needs approval in the House of Commons, will last for two months.

Among items included in the tax break includes alcoholic beverages, snack foods, diapers, printed books, audiobooks, Christmas trees and children's toys for kids under 14.

At Out of the Box, a store that has more than 3,000 board games for all ages in Ottawa's Bells Corners neighbourhood, owner Jimmy Sirmas says he and his team will have to go through them all to find which games qualify and which don't.

One of the most popular games is Warhammer 40,000, a miniature war game for ages 12 and up. While the exemption should apply to the popular game, he doesn't want to be wrong.

"This is one of the items we just need clarification will be included," he said.

"With it being one of our biggest sellers, it could have a huge impact on our business."

Sirmas says its been frustrating to see little communication on specifics of the new policy.

"We've just been reading online what's going to be included," he says. "And then we're getting lots of questions from customers."

He says at an important time of year for his store, he's noticed a slowdown as people wait for the exemption to kick in. He says he's also getting customers asking to put items aside so they can come back when they are.

"It's a lot of confusion," he said.

"I think it's a good idea to help people out a little bit, but it definitely seems a little rushed at this time of year, especially for small businesses that are being impacted already with the Canada Post strike."

He says he hopes the policy helps his customers.

Some shoppers like Aileen Connelly aren't sure it is helping those who need it most.

GST already does not apply to "basic groceries," which includes fresh, frozen, canned or sealed fruits and vegetables and most milk products and eggs.

"A lot of people are struggling to buy groceries and just basic items," said Connelly. "And they probably can't even afford to buy Christmas presents. So how is this going to help them?"

Nearby, at Scotty's Corner Diner, owner Jodi Statham says she doesn't know yet if it will have any effect on her business.

"I hope to see that it helps us out. But do I think it's going to change all that much? Not too sure. It's around the holiday season so people choose between Christmas presents or food."

Regular customer Andrew Christea says he believes the two-month tax break will be a good incentive.

"Things are getting more expensive these days and people are trying to stay in, I'm trying to save money" he said. "But I like coming out and supporting the local businesses. So I think it'll be good for us."

GST, which stands for goods and services tax, is a federal tax that applies to most, but not all, goods and services in Canada. An estimated 18.7 million people will receive a cheque this spring, costing the government about $4.7 billion.

The tax exemption will run from Dec. 14 until Feb. 15, 2025.

With files from CTVNews.ca