25 replies to this topic

[Victoria Watcher]

As GST break approaches, small businesses prepare for a tax holiday headache

 

Small business lobby groups concerned the policy will cause chaos and confusion for retailers and consumers

 

https://www.cbc.ca/n...mpact-1.7408752

 

 

 

 

 

 

'Worst-designed' tax policy in a decade, says economist

 

Ottawa-based economist Mike Moffatt called the GST holiday "probably the worst-designed tax policy or tax initiative we've seen in a decade."

 

"There's hundreds and hundreds of items like this where [you have] two very similar items. One gets a tax break and one doesn't," he said.

 

Moffatt and Kelly share the concern that some businesses will make mistakes in implementing the tax break and then find themselves in front of the Canada Revenue Agency in the spring.

Edited by Victoria Watcher, 13 December 2024 - 03:02 AM.

[Matt R.]

As PepsiCo has shown, it’s fine to opt out. Just be prepared for the backlash.

[Matt R.]

CRA confirmed with the CFIB that this is essentially optional for business to participate in and that there are already ways for business or consumers to get their gst refund directly from the CRA.

https://x.com/cfib/s...CBKDaNtdtZBo8BA

[dasmo]

I might have to keep every receipt and then apply for my $2.59 refund.... 

[Victoria Watcher]

[LJ]

Yeah, that's exactly what I would do if I owned a business.

 

You want the miniscule rebate, you do the work.

[max.bravo]

I bought a new (used) car today. No tax holiday on the 12% provincial used car tax…. Not that I was expecting it. But oof, that tax always hits hard, and today it felt especially nasty.

Edited by max.bravo, 13 December 2024 - 07:45 PM.

[Matt R.]

Done.

[Victoria Watcher]

[Victoria Watcher]

 

 

[Mike K.]

They’re not showing evidence of prices on Friday, though.

[Matt R.]

BCLDB has said this is too complex and will not be participating on the manufacturing side. Many vendors will be passing the gst on as well due to this, as they cannot simply eat the cost during their slowest six weeks.

[dasmo]

It's the stupidest thing ever. Far too complex for the benefit. Now if they simply ended the GST flat out like it was supposed to happen. Then I would have voted for them. Promise. 

[Matt R.]

The ongoing bookkeeping will be a hassle too. Since liquor always has gst, it’s easy to gl all liquor, but not anymore.

Very poorly thought out.

[max.bravo]

It’s gotta go down in history as the worst attempt to buy votes ever.

Off the top of my head:

-consumer savings is minuscule on most purchases. $1.18 saved at shoppers drug mart. WOW!

-it takes cashiers 2x as long to process these transactions. Everyone in line is frustrated. Especially the cashier

-if a store isn’t honoring it; it’s a letdown for some people, leading to terrible customer service interactions during the already stressful holidays

-it reminds us that GST is optional. What a stupid way to remind people that GST could be eliminated on a whim forever, but the government won’t. Massive marketing fail.

-bookkeeping/accounting nightmare

-inventory and POS nightmare

-bureaucratic enforcement/adjudication nightmare. If we thought CERB was poorly rolled out; just wait until the teams of GST police come hunting for the hundreds of thousands of people who accidentally made incorrect claims on this stupid program.

-there’s no way for the average person to quantify their cumulative savings over the course of the tax holiday.

what an expensive waste of resources, on every possible level.

Edited by max.bravo, 14 December 2024 - 07:20 PM.

[Victoria Watcher]

Some people think its a general GST holiday, leading to confrontations with cashiers. 

Edited by Victoria Watcher, 14 December 2024 - 08:34 PM.

[Matt R.]

Some people are surprised the liquor tax is still applied…

Protein drink in the health food aisle, gst. The same drink in your pop cooler next to the iced tea? No gst.

[FogPub]

As soon as I heard about the gst break I put off any further holiday shopping until it started, which it now has.  Every little helps...

[lanforod]

Too late for a lot of stuff imo

[Barrister]

Is the GST off wine here in BC?