Some B.C. business owners frustrated with GST holiday rollout

On the eve of the Goods and Services Tax holiday, some British Columbia businesses are frustrated with how this process has played out.

The federal government is waiving its five per cent GST for certain products from Dec. 14 until Feb. 15. The two-month tax holiday was proposed to make life more affordable for Canadians struggling with the high cost of living, according to the Liberals.

But for business owners like Janet Benedetti, it’s been nothing short of a headache.

She says they’ve been forced to sift through large amounts of products to figure out which are exempt.

“It was quite convoluted to navigate the different items that were exempt and why they’re exempt and not exempt,” the co-owner of Benny’s Market told CTV News.

“Everybody is scrambling, I think,” she continued.

Jasroop Gosal, spokesperson for the Surrey Board of Trade, says they’ve heard similar complaints from businesses.

“The exemption list has been updated constantly since two weeks ago when it was first announced,” he said.

“So these business have to go back into their inventories and double-check and triple-check and make sure they are itemizing the actual exempted goods,” said Gosal.

Under the exemption, many foods in Canada will be GST-free. The break also applies to children’s clothing and footwear, children’s toys, books, print newspapers and Christmas trees, but what else falls under that umbrella is vague.

Beer, wine and some other alcoholic beverages are also exempt.

While frustrated with the process, Benedetti is happy to see people get a bit of a break during the holiday season.

“Obviously this time of year everybody is spending a little more anyways, and maybe it will make a difference to some people’s bottom lines,” she said.

A recent online survey of small businesses by the Canadian Federation of Independent Business (CFIB) found that only four per cent of respondents expect stronger sales because of the tax break. Dan Kelly, the CFIB’s president and CEO, says some business owners he’s spoken to are even fearful of what will happen as a result.

“The (Canada Revenue Agency) is not known for being particularly lenient if you make mistakes. Ottawa has found the most confusing possible way to launch this two-month holiday,” he said.

“I’ve had small business owners call me in tears trying to sort this out because they know if they make a mistake, they are going to get an audit by the CRA in March or April with a big bill for taxes they should’ve charged and didn’t, or taxes that they did charge when they weren’t supposed to.”

With files from CTV National News’s Alex Carpa