The GST/HST holiday initiated on Dec. 14 aimed to relieve some cost burdens on Canadians, but experts suggest its effectiveness is questionable. An economist noted that while GDP saw a minimal uptick of 0.1 percentage points, this is not substantial enough to signal lasting benefits. Furthermore, small businesses reported spending significant resources—averaging $1,000—on system adjustments due to the confusing list of tax-free items, raising concerns that the overwhelming operational changes offset any potential gains from increased consumer spending during this period.
The GST/HST holiday, while intended to help, may have cost businesses more to implement it than they gained from the increase in spending, according to experts.
The increase in GDP during the tax holiday was only 0.1 percentage points, which is insignificant and hardly indicates a robust economic impact from the initiative.
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