Ottawa businesses, shoppers react to first day of GST holiday

GST holiday in effect For the next two months, you won't have to pay the GST for certain items. How are businesses handling it? CTV's Katelyn Wilson reports.

The federal government's GST holiday is now in full effect for the next two months, as some Ottawa business owners say they're still adjusting to the change.

"It's been very stressful," said Patti Taggart, owner of Tag Along Toys on Bank Street. "Very stressful, I have to say, but I think we're almost there."

Starting Saturday, the GST and Ontario HST is being waved on a laundry list of products including most food items, like restaurant meals and alcoholic beverages.

The tax break also applies to several items for children including clothing, footwear, toys and video game consoles.

"I was able to come in last night after we closed and was able to do the exemption," said Taggart. "The website, however, is still not working. The website is working, but I still haven't been able to get it all figured out yet."

Many are counting down the days to start their holiday shopping, hoping to save where they can.

"I waited for today just to save some tax," said Ottawa shopper Angie Shi. "It's a nice relief for everybody and it can go to something else so I can plan ahead for what I'm spending for the season."

The Canadian Federation of Independent Business (CFIB) is urging customers to be patient as retailers work through the fine print.

"Many businesses do not feel ready at all for this change," said CFIB president, Dan Kelly. "We know that there are lots of products in the grey area where business owners are struggling to make judgement calls as to whether they're supposed to collect the tax or not."

The tax break is set to run until Feb. 15, hoping to give businesses a boost into what is for many, a slower month.

"Depending on what you're serving in a pub, some things are taxed some aren't, so administratively it's a bit of a pain," said Glebe Central Pub Owner, Dan Rogers. "And then we have to do a lot of work to put the tax back on, so I don't know if we will benefit all that much."

A government spokesperson told CTV News it expects all businesses to comply, although in a press conference Saturday, it does not appear the tax break will be strictly enforced.

"As small businesses do their best to comply with the legislation and demonstrate their ability to be able to do that, then the Canada Revenue Agency will not focus on them in terms of compliance," said Canadian Minister of Small Business, Rechie Valdez.

As for consumers, many say it's too early to tell just how much they'll actually save.

"I think the hot soup we picked up might still have HST but there is no tax on that so hard to tell," said Nicole Crevier. "I'd like to take a look at the bigger purchase, that's for sure."