Ottawa businesses, experts reflect as GST tax holiday wraps up

As the GST tax holiday comes to a close, business owners react to whether it made any impact on consumer spending. CTV’s Josh Marano reports.

The temporary GST and HST holiday comes to an end on Sunday and for some businesses in Ottawa, the measure is receiving some mixed reviews.

At Wilf & Ada’s diner on Bank Street, the lunch rush filled every table, but longtime server Steph Goodwin says it’s just another weekend and the tax break has almost nothing to do with it.

“It’s been very negligible in terms of sales. We’ve had a couple more people coming in, grabbing a mimosa, or grabbing a little cocktail because it’s a little cheaper,” Goodwin said.

Goodwin says when the measure was first implemented, the restaurant saw more visitors than usual, but after a couple weeks, fewer people came in because of it.

“I feel like it’s become such a thing where people just aren’t expecting it anymore.” Goodwin said.

While it may not be noticeable on a day-to-day basis, Restaurants Canada vice president Richard Alexander says dining sales have increased dramatically across Canada over the two-month period.

“Everything is pointing in a very positive direction for increased sales.” Alexander said. “Anywhere from 7.5 per cent all the way to a 23 per cent increase in restaurant traffic and sales.”

Alexander adds employment has also increased in the hospitality sector, increasing by 6 per cent compared to 2 per cent for all over industries.

“We are the fourth largest private sector employer in Canada, so the GST holiday is not only good for keeping restaurants afloat, but it’s good for employment, especially at a time when we’re facing Trump’s tariffs from the south that will result in job losses,” he said.

Alexander says with tariffs on the way, Ottawa should extend the tax break, with necessities like food expected to see a large increase in price.