Will tax holiday spur more Canadians to spend? Why some stores doubt it [Video]

The federal government’s temporary “tax holiday” could deliver narrow savings for consumers, but some small businesses are unconvinced they’ll see any benefits.

The two-month tax break comes into effect Saturday, cutting the goods and services (GST) or harmonized sales tax (HST) from dozens of items, including prepared foods and select groceries.

The Liberal legislation will save consumers an estimated $1.5 billion, according to a costing note published by the parliamentary budget officer.

Pat Nicastro, owner of La Bottega Nicastro in Ottawa’s ByWard Market, is optimistic about the savings the tax break could deliver his customers, especially on prepared foods. La Bottega features a small groceteria, a café and restaurant and a deli sandwich counter.

However, Nicastro said he wasn’t certain his store would reap any lasting benefits from the tax break, aside from a small “boost” during the slower months in January and February.

Tax breaks on small businesses would help more …