On Saturday marks the end of the two -month sales tax vacation of the federal government, which gives the Canadians a rest on the cost of some essential products, including restaurant foods.
And although David Halfyard’s customers at the Cabin restaurant in Fredericton have been enjoying the 15 percent discount, it is not sure if it is enough to change anyone’s habits.
“Who doesn’t like to get a discount? People love. As if they would stop out because he’s off, I don’t know,” he said.
Halfyard has already reduced the numbers and said that his sales during the two -month window that began on December 15 are low. But he is still convinced that tax exemption helped.
“I’m sure I won a little additional businesses because of that. How much, I couldn’t tell him a finger,” he said.
“The world is what it is today, it is difficult to compare last year with this year. People are a bit of fear of spending, and they are only being conservative at this time, even with tax reduction,” said Halfyard.
“We are all a little fear of where we are heading.”
On February 15, the end of the two -month GST/HST holidays from the federal government to give Canadians a break about the cost of some essential products, including beer, wine and restaurant meals. But the new brunnswickers are divided over whether or not it was well spent money.
Halfyard said he has had to raise his prices more frequently than he would like.
“I am a little dining room and it costs you about $ 20 to come to get bacon, eggs and coffee. I apologize for that, but it is. There is nothing I can do about it.”
Fiscal holiday data is not yet available
The official account on spending during the break will come from Statistics Canada on a later date, but at least one organization that represents the restaurant industry said it has had a positive impact.
Janick Cormier, Vice President Atlantic of Canada Restaurants, was associated with the Open table of the reserve platform to collect data.
She said there was an eight percent increase in reserves in the Atlantic of Canada during fiscal holidays.
Ontario saw a 23 percent increase during that same period, according to the open table.
“We are living in a world where 53 percent of the restaurants are currently operating with losses or are barely reaching a balance point,” said Cormier.
“Therefore, anything that makes people pass through their doors, or that encounters to have that dessert or take that glass of wine, will help with the final result.”
He would like to see the government extend tax exemption to “set up this second great wave of economic agitation.
Customers divided on tax exemption
During the last week of discounts, the diners of the cabin had mixed criticisms about government spending, but for Willis Storey, he provided a very necessary relief at a time when all food prices are high.
“It is expensive to eat outside and it is expensive to buy edible these days. I went and looked at a small steak there the other day … $ 20. It’s crazy.”
But Blaine Disraches said she has not noticed the difference in her invoices, and that she has not changed her eating habits.
“We leave two or three times a week, minimal, to … eat and things like that. So it has not made us leave more or less, but 15 percent is always pleasant.”
Mike Jennings said he did not agree with tax exemption, and that he has not influenced his expense at all.
“I don’t think it was well spent money,” he said. “I think we have high deficits and debts, and I think that’s where government money should be. I don’t think this helps us much.”
Without ‘unexpected gain’ for the retail industry
Jim Cormier, director of the Atlantic of the Canada Retail Council, said that “any type of incentive for people to buy is something good for all our members and good for consumers. But we didn’t see unexpected gain.”
“All we heard was that people didn’t necessarily spend more, they often forgot,” Cormier said.
“And when they reached cash, they realized that they were paying 15 percent less. Therefore, it was good for them, but … it did not necessarily turned out that the client said:” Oh, well, I will spend more. “
Cormier said that instead of a tax exemption for consumers on certain basic products, he would like to see Ottawa lower corporate taxes to benefit companies.
He said it is optimistic, we will see a return to spending in spring, and “then we will expect that something that is happening to us does not materialize. And if so, our government can work hard to find other markets.”
Uncertainty about the threats and rates of the United States
Tim Rissesco, president of the Center of the Atlantic of Canada, believes that tax exemption “was a good movement in December when people were dealing with a small affordability crisis.”
But at this time, “small businesses and cities will need help to prepare for an imminent commercial war with the United States.”
Rissesco would like HST to continue, but he would also like to see the long -term support to buy a local to fight against the incoming tariffs of the United States, and believes that the Canada government could be a great player in that initiative.
“It is becoming increasingly difficult for people to remain in business and anything that the government can do to encourage people [to shop local] It would be welcome in our main centers and streets. “
