Ontario: Businesses, parents comment on tax holiday

THUNDER BAY, February 22, 2025 – The two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for groceries and holiday essentials that began on Dec. 14, 2024, came to an end on Feb. 16, requiring all registrants selling goods and services that qualified for the tax break to update their accounting and point-of-sale systems to resume charging the GST/HST.

An advisory from the Thunder Bay Chamber of Commerce states that the Canada Revenue Agency (CRA) "understands that transitioning back may pose some challenges to businesses."

The CRA website states there will be a focus on situations where businesses wilfully and egregiously refused to comply with the temporary measures, such as a business that collected the GST/HST and did not remit it to the CRA. However, business operators who make reasonable efforts to comply with the legislation will not be the focus of CRA compliance actions.

Jim Comuzzi, owner of Rooster's Bistro in Thunder Bay, said removing and reinstalling the taxes to his prices was simple but he can't see the benefits in the tax break.

"When we put it back on people did notice a little bit of an increase, but they were equally confused as to what benefit it had for them during the time that it was off," Comuzzi said.

Comuzzi didn't feel the tax break stimulated business. He called the break a "hindrance of business."

"In fact, I'm not sure that it brought me any business at all," he said. "I'm somewhat confused as to why it was done, and what the real benefit of it was, so I'm torn on it. I don't see it as a positive at all."

For Pina Torma and her husband Chris, who are raising their twin boys, the tax break has been quite beneficial.

"It was really helpful, especially for buying gifts," Torma said. "It did help with the essentials like clothing and food items for school as well as family activities like going out for family dinners."

Torma added she would like to see the taxes permanently eliminated on these items but she fears that could cost Canadians by reductions or loss of other essential services and programs.

"I don't want that to impact other vital services like our health care," she said. "Once the government starts helping us out too much, it will start taking resources away or making us pay for more things. So I'd rather pay the tax if we still have our resources."

Matt Carr, owner of Retro North Games and Matt Carr Repair, said the government's lifting of the tax on video games and accessories was "very good" for his video game company, which he credits for increased sales through the two months.

"We use Shopify for all of our website (and till) payments, they took care of all the tax removal for us," he said. "Other places had to go through (their systems) and manually take tax off individual things."

Carr said he would like to see the government implement tax-free programs yearly around Christmas when families could do with the savings.

"It's probably not sustainable to do all year round, but around Christmas, when people are looking to spend more, I think that's a good time," he said.

Sandi Krasowski is a Local Journalism Initiative reporter with The Chronicle-Journal in Thunder Bay, Ontario.