With the end of the two-month tax exemption period on goods and services (GST) in Canada, business owners have differing opinions on how this measure has affected their commercial activities.

While some believe it contributed to stimulating sales and increasing purchasing interest, others point out that its impact was limited and did not bring about a significant change in revenues.

Pros and reservations about the impact of the exemption

According to a report published by CTV News, some business owners confirmed that the tax exemption led to increased sales activity, as consumers benefited from lower prices, which boosted spending on the goods and services included in the decision.

Conversely, others see that the impact of this step was relatively weak, especially in sectors that do not heavily rely on the exempted goods, asserting that the two-month period was not sufficient to create a long-term economic impact.

Economic analysis: Was the impact tangible?

For their part, economists indicated that the tax exemption partially helped to stimulate consumption, but it was not enough to address the broader challenges facing small and medium-sized enterprises, such as rising operating costs and inflation.

They also added that the success of such measures depends on their continuity and integration with broader economic policies aimed at enhancing consumers' purchasing power and sustainably supporting the business sector.

What next after the tax exemption?

With the full reinstatement of the goods and services tax, business owners are looking forward to any future government steps to support the economy, amidst calls for more incentives that could boost domestic demand and alleviate burdens on both businesses and consumers.

In light of these circumstances, the question remains whether the government will resort to additional measures in the future to support the business sector, or if the impact of the tax exemption will remain merely a short-term experiment without long-term implications for the Canadian economy.