A temporary federal tax break set to start this weekend is causing confusion for Calgary retailers – and it’s also coming at a cost.
The parliamentary budget officer says the GST holiday could cost upwards of $2.7 billion if provinces with a harmonized sales tax ask for compensation.
It’s also coming at a cost to retailers who are attempting to implement the tax break by either updating their systems or bringing in extra staff to categorize items.
Set to start this Saturday, the GST holiday will see the tax of at least five per cent removed from dozens of items, including food, beer, wine and cider, and kids diapers, clothes, shoes and toys.
Children’s board games, toys and models are part of the GST holiday, for instance, but only if “intended for children under 14 years old,” the government’s guidelines state.
Some retailers say it’s confusing to know what falls under the tax-free umbrella and …