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Canada - Retailers rejig cash registers for 1% drop in GST

For those who believe a penny saved is a penny earned, it's time to get excited.

Beginning tomorrow, Canadians will see the Goods and Services Tax drop to 5% from 6%. However, the reduction means some adjustments for those ringing up sales.



 

"We have put it in our system," said Donna Nelson, a manager at Value Village's Ellice Avenue location. "It was a bit of pain in the butt ... but we haven't had any problems yet."

She added the GST reduction has generated some buzz among customers at the second-hand store.

"A lot of customers are excited, they seem to be looking forward to it," said Nelson.

The manager said all changes to registers are done on-site through a central computer system.

"We're ready to go," said Nelson.

Other retailers the Sun Media spoke with also reported a minimum of difficulties when adapting their cash registers to the new tax.

According to the federal Department of Finance, most Canadians are likely to incrementally save between $120 and $200 a year through small purchases as a result of the 1% reduction in GST.

However, Canadians making larger purchases like houses and vehicles are expected to see more dramatic savings. A family buying a $30,000 minivan will save $300.

"You have the odd person asking," said Gilles Cyr, sales manager at Dufresne Furniture.

However, he doesn't think the tax reduction will have a major impact.

"I don't think it will impact our business one way or the other," he said, but added he also believes those who sell large-scale items will see more interest generated.

"I think there will be more impact on cars and home sales."

Some industries that had difficulty calculating changes during the first GST reduction, which took place in July 2006, were those dealing with annual memberships and monthly payment systems.

Source : Winnipeg Sun - Canada, dated 31/12/2007

 

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