Shoppers, business owner happy but skeptical over holiday tax break

Snacks, booze, books, children's clothes and toys are just some of the items the federal and provincial governments are removing taxes from heading into the holiday season. 

For business owner Matthew Ledrew, the break couldn't come at a better time. 

"It's a wonderful way to give people a break around the holidays," he said. 

The government of Newfoundland and Labrador said it's matching the federal government's new GST/HST exemption, which runs until February. 

The province said in a statement the break will provide an estimated $48 million in provincial tax relief.

Ledrew owns Engen Books, a publishing company based out of Newfoundland and Labrador. He was selling his company's titles at the St. John's Farmers' Market on Saturday. 

But lately, he said, he has had a hard time with sales. 

"A lot of small businesses are having trouble," he said. "The vibe I'm getting is that it's a break that's going to allow consumers to spend more at small businesses like us." 

Shoppers are happy, and skeptical

For holiday shoppers, the tax break is offers some relief heading into the holiday season.

However, some are skeptical about the items picked to be on the list. 

Eldin Husic says he thinks the tax break was a good idea. But, he says, he would have chosen different items for the exemption, like local produce. 

"Anything that's local, I would really, really go for the local produce," he said. 

Chloe Budgell says residents are struggling, and that the tax break is a good idea for this time of year. But, she also isn't sure about some of the items on the list. 

"[I'm] not sure about the candies and stuff. I don't really think that's necessary. But everything else, that seems great," said Budgell. 

WATCH I Some shoppers weigh in on the so-called tax holiday:

It’s good, it can be better, and skepticism. St. John’s shoppers talk tax holiday

5 days ago

Duration 1:30

The CBC’s Julia Israel spoke with people perusing goods and services at the St. John’s Farmers’ Market about the GST/HST break on many items that’s in effect until mid-February.

Charlie Mini says he's also on board with the break, but believes there's some politics involved in the move.

"It's nice for Christmas season, but unfortunately it won't last," he said. "I think it's a pre-election thing, maybe." 

Cassidy Rich says taxes are necessary for social programs, but is happy that children's clothes and accessories will be cheaper this year. 

"I think that stuff should not have tax on it anyway, because young families really need that kind of head start," she said. 

Paul Fieler says he's looking forward to the tax relief on alcohol. He said he thinks a lot of people will save money and it'll be a big help during the holiday season.

"I'd like to see it gone forever," he said. 

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