Canada's GST/HST Holiday Draws Mixed Reactions From Businesses and Consumers

The temporary tax break aims to boost spending but has sparked logistical challenges and political criticism.

The GST/HST holiday, which began December 14 and runs until February 15, removes sales tax from certain goods, including restaurant meals and children’s items.
Restaurant owners in Ottawa and across Canada hope the tax break will mitigate their traditionally slow post-holiday months, with many businesses operating at a loss or barely breaking even.
Some small businesses, particularly those with mixed inventories, report significant challenges in adjusting their systems to reflect the tax changes.
Critics, including some business owners and commentators, have labeled the tax holiday a political gimmick, citing minimal savings for consumers and logistical burdens for retailers.
The initiative has also faced political fallout, with former Finance Minister Chrystia Freeland reportedly opposing the measure, contributing to her recent resignation.