The nationwide GST/HST tax break begins tomorrow on several items. Only the GST will affect the NWT and Nunavut as neither territory has a sales tax, meaning the five per cent paid on top of your total at the cash register will be exempt.
Gudie Hutchings, federal Minister of Rural Economic Development, spoke with SA国际影视传媒 on Friday morning explained what impacts it have on the North.
Despite inflation shrinking and banks lowering interest rates, she said people aren't necessarily feeling economic ease at home.
"I refer to it as 'kitchen table issues' and this is what we did to help folks," she said. "Especially this time of year, when you're coming into the holidays, so it'll let you have a few extra dollars to have some treats around the house when friends or family drop in."
The list of exempt items includes prepared foods, restaurant meals, snacks and certain alcoholic beverages, those at less than seven per cent alcohol. It also includes certain children's clothing and toys, diapers, board games, newspapers, books, and Christmas trees. The break lasts until Feb. 15, 2025.
Whereas some retailers across the country have vocalized their concern and confusion over re-programming their point-of-sale machines to accommodate for the tax break, Hutchings said she's heard from other retailers saying the change has been easy.
"Not every machine is the same, I know, but point-of-sale people have been reaching out and CRA (Canada Revenue Agency) had some sessions to help business with it," she said.
The Yellowknife Co-op to ask if it has had any trouble reprogramming their machines. Mario Ostigui, the food store manager, said switching things around wasn't an issue, and they're ready for tomorrow.
The downtown liquor store also has machines that have been automatically programed to remove the tax for beer, wines, and certain liquors, said Baldeep Singh, the store's manager.
When it comes to children's clothing, that's where it can become a bit tricky as Lyric Sandhals, co-owner of Boreal Kids Co., will tell you. That's because items such as baby clothes, children's clothes up to size large and footwear up to 24.25 cm in insole length are GST exempt, while specialized clothing designed for sports or recreational activities - tap shoes, soccer boots or ski boots - are not.
Sandhals said she and her business partner, Amy Allan, have been going through their entire inventory by hand to make sure the right items receive the discount.
"We have about 6,000 items to go through," she said. "We've been comparing it to a list that the federal government provided, so we're working on it."
If a customer does purcahse an item that is GST-exempt and the tax is charged, the federal government says you should request a refund of the tax amount from where you bought the item in question.
"There may be an item that we missed and we want our customers to tell us if that's the case," said Sandhals.
If a business is having trouble reprogramming, Hutchings urged them to call the CRA toll-free at 1-800-959-8287.
