Shoppers Flock to Boxing Day Sales and Tax Breaks as Cost-of-Living Pressures Mount
. Despite the savings, many expressed concerns that the discounts fall short of addressing the broader challenges of rising living costs.
For two months, selected items such as children’s toys, video games, snacks, wine, and restaurant meals are exempt from GST or HST, depending on the province. The tax break has spurred many consumers to take advantage of Boxing Day promotions at local retailers.
In Toronto, Nakul Singal and his partner arrived at Fairview Mall early Thursday morning to search for bargains.
“Every year, we generally find good deals,” said Singal, who had been waiting for Boxing Day to buy new earphones. “It’s a great time to shop.”
While Singal noted that the tax break has eased food costs for his family, he urged the government to do more to address rising living expenses, particularly housing.
“I hope they can find a way to stop inflation,” he said. “We are struggling right now.”
Matt Poirier, vice-president of federal government relations for the Retail Council of Canada, predicted Boxing Day would see a boost due to the tax holiday. However, he acknowledged challenges faced by businesses, such as adapting older payment systems and determining which products qualify for the exemption.
An RBC Economics report earlier this month revealed a slowdown in retail spending in November, with Black Friday weekend sales slightly below 2023 levels. Spending on toys and games dropped noticeably after November 21, the day the tax break was announced. Despite this, RBC economist Carrie Freestone projected a modest increase in per-person retail spending for the fourth quarter—the first since mid-2022.
Joey Comia-Orellano, assistant store manager at a GameStop in north Toronto, said the tax holiday had already drawn significant customer traffic.
“We’ve seen shoppers even before Boxing Day,” he said. “People are buying more games, controllers, and consoles.”
He expected sales to surge further on Thursday as customers combined Boxing Day deals with the tax break for maximum savings.
Other shoppers expressed skepticism about the long-term impact of the tax holiday. Raj Jeetu, another customer at Fairview Mall, said he had taken advantage of the tax break at restaurants but doubted its overall efficacy in combating high prices.
“I don’t know if it’ll make a big difference,” he said. “Prices really need to come down.”
Comia-Orellano echoed the sentiment, noting that while the tax break might not solve affordability issues, it offers some relief.
“This is like a small breather for people during the holidays,” he said. “It doesn’t make things significantly more affordable, but every bit helps.”
