Restaurants still waiting to see if GST/HST holiday impacts business

December 20, 2024 Canuck

Reviews are beginning to come in from customers and restaurants a few days into the federal government’s GST/HST holiday.

The tax holiday is pausing taxes on most things you’d order in a restaurant. So far, it seems customers are happy to have the break, but businesses say they are still waiting to see if it will make a difference.

Picking up the tab, customer Steve Wood is happy to save on his $60 restaurant bill at Fratelli in Westboro.

“I think I saved like about seven or eight dollars,” he said.

So, he ordered an extra drink. Still, the regular says the tax break is not the reason he’s grabbing lunch today at the restaurant.

“I would say it’s more of a happy coincidence,” he said. “We’ve been enjoying our holiday parties with our friends. It’s definitely nice for sure to have that extra taken off the bill.”

The restaurant was busy on Friday at lunch, but owner Katie Valente thinks it’s the typical holiday rush. She isn’t sure it’s directly related to the tax break but is hopeful for the coming weeks.

“It’s kind of hard to tell right now just because this time of year is so busy for us,” she explained. “I think we’ll see more of an impact in January and February when things tend to slow down a little bit.”

She said it ended up being simple to take the GST/HST off for customers in the computer system.

“I was stressing out about it for sure ahead of this,” she said, “but when I got an email saying that, you know, these are the steps, just follow this and it’ll be done, it was a relief.”

Across town at Steele’s Restaurant, customer Ron Bultje is just learning the news.

“I didn’t even know it was taken away,” he said.

Still, it won’t be affecting his spending habits.

“Not really,” he said, “because I eat out a lot. Makes no difference to me.”

Serving up breakfast and lunch at the restaurant, owner Sam Kadar said he hasn’t seen much of a change.

“The usual suspects coming in,” he said. “Nobody new, nobody different. You know, they might decide, ‘Hey, no, I’ll have an extra coffee. I’ll have maybe an extra egg,’ and it offsets what they’re used to paying. Other than that, no, I don’t think I made a difference at all.”

Both owners tell CTV News they don’t feel it’s a bad thing for customers.

While some customers like Joe Mazzarello agree.

“Less tax the better for sure,” he said.

Others say – for them – there will be no change.

“I think it’s a good idea,” said Carolyn Murray.

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