You can save a few cents on potato chips, candy and granola bars, for two months, thanks to the federal government’s two-month goods and services tax holiday.
But you’ll have to be sharp-eyed to ensure you get the same tax break if you’re buying an energy bar which only gets the discount if it’s sold beside other products that don’t include caffeine, vitamins or protein — and as long as Health Canada considers it food.
If you’re really hungry and you have to buy from a vending machine, you’ll have to pay the five percent GST.
The federal government announced the temporary tax holiday in November, removing the GST from several items from Dec. 14 to Feb. 15.
Restaurant meals, along with pop, beer and wine, are also getting the two-month tax break.
But with the savings of $2.50 of GST on a meal tab of $50, the difference isn’t dramatic.
At Speed’s Pub, in Ladner Village, there hasn’t been much of a change since the tax break was implemented a few days ago.
Manager Troy Paterson said that Christmas is a busy time of year anyway, but it hasn't been any busier than usual with the tax holiday.
Some of his regular customers have told him they just pass on the savings to the servers anyway, he added.
It took some time, about two and a half hours, to change over the sales system however, he said.
“It took us a bunch of hours to go through each item because some items are included and some are excluded. We had to go kind of, item by item, to make the changes on our end (to), POS (point of sale) system. That was a headache,” he said.
That process took longer at the company’s other locations, he added.
On Feb. 15, the restaurant will have to change back again as the GST is restored to the usual items.
He doesn’t think the tax holiday is worthwhile.
“There are bigger fish to fry, to be honest. The industry as a whole is struggling right now and we need to tackle much bigger issues than giving the consumer a five percent reprieve for a couple months,” he added.
Those other issues include rising labour and supply costs and a tighter economy.
GST holidays have also been given to items “that bring joy to the season,” said the federal government, such as some toys, jigsaw puzzles, children’s clothes, car seats, video games, printed books, newspapers and Christmas trees.
Jill McKnight, executive-director with the Delta Chamber of Commerce, said that the measure seems more directed at consumers than to help business.
“We definitely heard about the administrative burden that it’s placing on businesses and particularly the short notice that’s happening in the busy holiday season,” she said.
One business had to write new computer code In order to implement the tax break, she added.
And people in other provinces where the provincial and federal sales tax are combined into a harmonized sales tax are benefiting more, she said.
People aren’t complaining to the chamber and its executive as much discussing the impacts, she added.
Some businesses have had their head offices make the change while smaller operations have to do so themselves.
“This is not necessarily an incentive for the business community. It’s an incentive for consumers,” she said.
She pointed out the tax holiday will be in effect for 63 days, “And it feels like a lot of work for businesses for 63 days.”
At Mario’s Kitchen, in Tsawwassen, it’s too soon to say what effect the tax break will have.
December’s usually a busy time so it’s difficult to say, but in January, it will be easier to determine if it made a difference, said owner Darren Gates.
“It’s hard to say if it’s compelling people to go out or even just spend more,” he said.
“It’s too early to be able to tell for sure but it’s certainly not depressing things. If anything, it would make people feel a little more light-hearted about things and maybe even if they should take advantage of it, I don’t know.
“Generally speaking, we’re happy about it,” he said. "We're happy they're trying to do something."
But decision making for retail spending is a subtle thing, he added.
“But I think, if anything, it makes people happier. They’re not gloomy and that’s a key component in our customer experience,” he said.
He said the process of changing computers to reflect the temporary tax break wasn’t difficult.
A family spending $2,000 on qualifying goods, such as children’s clothing, shoes and toys, diapers, books, snacks for the house, or restaurant meals, would realize GST savings of $100 over the two-month period, said the Department of Finance.
