GST holiday: Quebec will not harmonize with Ottawa

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.

“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 the Minister of Finance, Eric Girard, Friday in a press scrum at the National Assembly.

The minister also explained his decision by affirming that the federal measure is “temporary” and that it “will have no impact on the economy”.

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

Eric Girard maintained that his government was seeking to take measures “that have permanent and long-term effects.”

Ottawa’s GST holiday, which will be in effect from December 14 to February 15, affects dozens of items commonly purchased at Christmas, including children’s clothing and toys, video games and consoles, Christmas trees , meals in restaurants and caterers, wine, beer and sweets.

Five provinces, namely 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, therefore including that of the provinces.

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

–This report by La Presse Canadienne was translated by CityNews.