Temporary tax break criticized as ‘failed experiment’ that was more hassle than help to businesses

CTV’s Mike Lang reports on the impact the temporary holiday tax break had on local businesses and consumers.

The GST/HST break is set to come to an end this weekend, but while consumers have enjoyed seeing zeroes at the bottom of their bills, the two-month break has yielded mixed reviews among local businesses.

On one hand, Dunlop Street Diner saw a nearly 15 per cent increase in clientele compared to previous Januarys.

“We definitely noticed a big increase in the month of January,” confirmed Colin Johnson, the diner’s general manager. “It’s been a really nice boost for consumers to kind of save a little bit of money, especially right after the Christmas season.”

But at Flying Monkeys Craft Brewery in Barrie, staff say the last two months have been business as usual.

“We didn’t notice much of an impact,” said Alex Hackett, one of the managers at the brewery. “I think our guests were quite happy to see their bills a little bit lower, but other than that, we didn’t notice as much of a difference for us.”

And while some consumers spent less on more, others were not as enticed.

“I’ve enjoyed the tax holiday,” said a customer at Dunlop Street Diner. “I wish it was longer, but honestly, it didn’t affect my spending at all.”

According to the Barrie Chamber of Commerce, many businesses found that complications for the tax break outweighed the benefits.

“It was very expensive for businesses to set up,” said Paul Markle, Barrie Chamber of Commerce CEO, citing modifications that some businesses had to make to their systems to only accommodate the tax break on eligible products or services.

“They [are] still left with those setup costs,” added Markle. “I think it’s a failed experiment quite honestly.”

In a statement to CTV News, Craig Stevens, executive director of the Downtown Barrie Business Improvement Area (BIA) said in part: “While having a ‘tax break’ has its obvious benefits for consumers saving money, the feedback has been mixed mainly due to the lack of notice, rapid implementation and lack of understanding.”

“I think a tax holiday that’s more permanent on certain items would be more appropriate,” stated Markle.

“[It] could be a nice little break for people and encourage people to go and support small business,” said Sarah Jones, a manager at Beaver Rock Coffee.

The two-month GST/HST break comes to an end on Saturday.