Tax holiday boosting spending at retailers, restaurants: industry groups

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Almost a week into the GST holiday, retailers and restaurant owners appear on track for a sales boost despite some of the struggles they faced implementing the temporary break.

A person carries shopping bags along a street in Montreal, Saturday, December 14, 2024. THE CANADIAN PRESS/Graham Hughes

However, he says businesses, including ones with older payment systems, have faced hurdles trying to implement the tax break on short notice and even figuring out which items qualify.For example, toy stores reported large declines in sales ahead of the tax break kicking in, said Poirier, as customers waited a few extra days to buy Christmas gifts.

“Typically, spending on popular children’s gifts builds as the holiday season approaches,” wrote Freestone. Restaurants Canada president and CEO Kelly Higginson says it’s been a little easier for restaurant owners, as everything they generally sell excluding hard liquor qualifies for the break.

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