Quebec will not harmonize with Ottawa for the GST holiday

Photo: Jacques Boissinot The Canadian Press Eric Girard, during question period at the National Assembly, November 26

Thomas Laberge – The Canadian Press in Quebec City

Posted at 12:41 p.m.

• Quebec

The Legault government confirms that it will not harmonize the Quebec sales tax (QST) with the federal GST holiday, because Ottawa does not intend to compensate the provinces.

200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000

“I think that if the federal government had announced that it was compensating all the provinces for harmonization, I am convinced that all the provinces would have harmonized. But that was not the announcement,” said Finance Minister Eric Girard on Friday in a press scrum at the National Assembly.

The minister also explained his decision by stating that the federal measure is “temporary” and that it “will not have an impact on the economy.”

“It's also not clear that the entire benefit will go to the consumer. It's possible that some of it will stay with producers,” he added.

Eric Girard said his government is looking to take measures “that have permanent, long-term effects.”

Ottawa's GST holiday, which runs from Dec. 14 to Feb. 15, affects dozens of commonly purchased items at Christmas, including children's clothing and toys, video games and consoles, Christmas trees, restaurant and catered meals, wine, beer and candy.

Five provinces, the four Atlantic provinces and Ontario, have harmonized their provincial tax with the federal Goods and Services Tax (GST). However, the temporary tax holiday decreed by Ottawa will apply to the entire harmonized sales tax, including that of the provinces.

However, in Quebec, the provincial government collects its own QST of 9.975%.

Read also

• The bill offering a two-month GST holiday is adopted
• Will the GST holiday have an impact on your wallet?