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Boxing Day Shoppers Embrace GST Holiday Amid Economic Concerns
On Thursday, shoppers filled malls across Canada to capitalize on Boxing Day discounts, made even more appealing by a temporary GST holiday enacted by the federal government. However, some consumers express that reduced prices are insufficient to keep pace with the rising cost of living in the country.
For a duration of two months, various items—including children’s toys, video games and consoles, snacks, and dining—are exempt from GST or HST, depending on the province. This tax exemption has encouraged many to seek out deals during the Boxing Day sales at local stores.
Nakul Singal, visiting Fairview Mall in Toronto with his partner, highlighted the annual tradition of hunting for bargains. He remarked, “Every year, we generally get good deals,” adding that he was specifically looking forward to purchasing new earphones. “It’s good to shop around during this time,” he noted.
While the tax break has provided some relief regarding food prices for Singal’s family, he urges the government to undertake further action to address the high cost of living, especially regarding housing. “I hope that they could stop inflation,” he said. “We are struggling right now.”
Retail Council of Canada Observes Boxing Day Boost
Matt Poirier, the vice-president of federal government relations for the Retail Council of Canada, mentioned to The Canadian Press that Boxing Day sales are anticipated to receive a boost due to the tax holiday. Nonetheless, he pointed out that many retailers have faced challenges swiftly adapting their payment systems and determining eligibility for tax-exempt products.
An RBC Economics report earlier this month indicated a slowdown in retail spending during November, with holiday expenditures slightly lagging behind 2023 figures over the Black Friday weekend. According to RBC economist Carrie Freestone, spending on hobbies and children’s gifts notably dipped after November 21—the day of the tax announcement.
“Typically, spending on popular children’s gifts builds as the holiday season approaches,” Freestone noted, although she added that Canada is likely to see a modest increase in per-person retail spending in the fourth quarter, marking the first gain since mid-2022.
Joey Comia-Orellano, an assistant store manager at a GameStop in north Toronto, confirmed an increase in customer traffic since the tax break’s introduction. He stated that shoppers seem eager to take advantage of the temporary tax relief.
“We’ve been getting shoppers before Boxing Day,” Comia-Orellano said, predicting that foot traffic would intensify on Thursday as consumers aim to maximize savings from the tax holiday alongside the traditional discounts. “I did notice a lot of people buying more games, a lot of controllers, and definitely a lot of consoles, too,” he added.
Meanwhile, another shopper, Raj Jeetu, noted his frequent use of the tax break at restaurants but expressed skepticism about its long-term effects on affordability for Canadians. “I don’t know if it’ll help much. I guess the prices really need to come down,” he remarked.
For Comia-Orellano, feedback from customers indicates a mixed sentiment; while both the tax relief and Boxing Day sales may not solve the broader affordability crisis, shoppers still find value in the savings opportunities they present. “It’s necessary; it gets hard around the holidays,” he acknowledged, referring to the tax holiday as a small respite for consumers amid ongoing financial pressures.
Source
globalnews.ca