Ottawa Faces $2.7B Loss from GST Break if Provinces Don’t Waive Compensation: PBO

A shopper holds multiple shopping bags in Sherway Gardens mall in Toronto on June 30, 2021. Alex Filipe/Reuters

Ottawa’s GST holiday could cost as much as $2.7 billion if provinces with a harmonized sales tax (HST) don’t waive their right to compensation, according to a newly released report from the parliamentary budget officer.

The GST holiday legislation, known as the “Tax Break for all Canadians Act,” was passed in the House of Commons at the end of November. The bill is awaiting the result of its third reading in the Senate before it can become law.