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Retailers concerned HST will dissolve competitive advantage

Karyn Handler, an employee of Alia N TanJay in Summerside, searches through some racks of clothes. Tax on adult clothing will be going up by nine per cent with the introduction of HST on April 1. TC Media photo

Karyn Handler, an employee of Alia N TanJay in Summerside, searches through some racks of clothes. Tax on adult clothing will be going up by nine per cent with the introduction of HST on April 1.

Published on March 11, 2013
Published on March 11, 2013
TC Media  RSS Feed

When HST comes into effect April 1, adult clothing and footwear will see nine per cent tax hike

Topics :
SUMMERSIDE , Iceland , Nova Scotia

SUMMERSIDE — Clothing retailers here are concerned about losing their competitive edge against off-Island businesses with the onset of the harmonized sales tax (HST) on April 1.

Several businesspeople who spoke with TC Media recently expressed concerns that shoppers might lose one of their biggest incentives to buy locally — the current lack of PST (10 per cent) on some clothing items.

With the beginning of HST, clothing and footwear (excluding children’s sizes) will get a nine per cent increase in tax.

“A lot of our customers are not happy about it,” said Sharon Poirier, manager of Alia N TanJay, in Summerside.

“They’re shopping now because of the HST coming into effect in April . . . I think it will take a while for them to get used to it.”

“We had an advantage in a way, because a lot of people who came over here from Nova Scotia and New Brunswick loved just the five per cent GST on clothing. And I think we may possibly lose some of those customers because it’s not going to be an advantage for them anymore,” she said.

It should be noted that Islanders will actually start paying less tax on many goods and services with the introduction of HST.

Current tax rates for most things are set at 15.5 per cent, while HST will bring that down to 14 per cent.

Still, Poirier said she’s sad to see the adult clothing and footwear exemption go.

“P.E.I. is going to lose a uniqueness. But then again I thought that when we started opening on Sundays,” she said.

And just like that transition to seven-day shopping, Islanders and visitors will just have to get used to it, said Krista Perry, manager of Eclipse in Summerside.

“Once six months comes — we’ll all be used to it by then anyway. It’s just a change that we’re not used to,” she said.

A full listing of items and what taxes will be applicable to them is available online at http://www.peihst.ca.

Comments

  • Username
    Alan
    - March 13, 2013 at 16:50:28

    Oh I forgot. HST on funerals too. Even in death they get you!

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  • Username
    Alan
    - March 13, 2013 at 16:46:12

    You are all forgetting that the HST will mean an increase in gas and diesel prices. Imagine, another tax calculated on top of a bunch of taxes both fed and prov. to give this gov't more money to throw around on nothing.

    Submit a comment

  • Username
    AboutTheGreen
    - March 12, 2013 at 16:53:32

    I don't think that the number of off-islanders coming to PEI specifically to go shopping in order to avoid the HST is as high as some would have you believe. No doubt there are some, and likely a majority of tourists and visitors that are here for "the trip" that pick up some things while here, but the clothing purchases are not the 'reason for" the trip as implied. Unlike Islanders that have a tendency, and have had it for decades, to "go across to shop" and turn that into a "Getaway Trip" or mini-vacation... but the principle reason for traveling was to shop.

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  • Username
    don
    - March 12, 2013 at 01:23:38

    well the farmers wanted it and retailers wanted so sit back and shut up. but farmers you wait and see when dizzy back stabs you and ads the hst to the items you though were going to be hst free. then lets see how well you will love your great hst then.

    Submit a comment

  • Username
    To Where Were They
    - March 11, 2013 at 23:34:26

    Where Were They - You note that the chambers of commerce and the farmers were endorsing the HST. Please understand that not all farmers supported the introduction of the HST - just the Federation of Agriculture. The National Farmers Union did not support the HST because that is an organization which is concerned about all segments of society, not just their own vested interests.

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  • Username
    Bring on Freeport-Kittery and North Conway
    - March 11, 2013 at 21:09:57

    I'm a teacher and cant wait to head to the outlet shops this March break-everything will be cheaper there to begin with-be a long time before I buy myself much clothing in PEI

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    • Username
      SAP
      - March 12, 2013 at 16:11:27

      I can see why you wouldn't care about supporting local business, it's not like your pay comes from taxes or anything

  • Username
    Wake up Islanders
    - March 11, 2013 at 16:59:14

    In less than TWO WEEKS there will be a vote to make this HST become a nightmare for most Islanders. The only way to stop this is if all Islanders give their MLA a call and demand that they not vote this in . Just rememberthat every thing that you didn't pay on before will now be going up 9%. So call all MLAs if you don't want to pay , but don't call Valarie Dochety see will do what Robert says you knopw what I mean

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  • Username
    sick of it all
    - March 11, 2013 at 16:11:37

    the only way to protest this hst is to stop spending here on pei... ive already cut back on my spending and i make more trips off island now to spend my hard earned money ie costco cheaper food ,cheaper clothing and better selection in the malls on the mainland even with our no pst it was still mcheaper so watch now ,. and to personaly protest this governments over taxing me to death..... stores will be closing down buisness's will be going banckrupt more often watch and see the downfall of pei over the next 5 years..... the sad part is the hst is locked in for 5 years so i ask you all STOP SPENDING

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  • Username
    where were they?
    - March 11, 2013 at 15:31:43

    Where were they when the chambers of commerce and farmers were endorsing the H(how) S(screw) T(tax). Not only will shoppers go to the mainland for boots & clothing but other merchandise. I wonder what the above groups will say then. Adios.

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  • Username
    SAP
    - March 11, 2013 at 14:54:03

    I do not think the hst is good idea, but how much clothing would you have to buy to cover the cost of the bridge before? Did that many people REALLY come here to shop, or just pick up some items while they were here? On top of the fact that items are often more in PEi, there was never any serious savings, and certainly not enough to all of a sudden pay for a trip south. That's a lot of clothes!

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  • Username
    TO THE MAINLAND
    - March 11, 2013 at 14:14:00

    I will do all my buying on the mainland. Clothing is cheaper and not seconds, Cars run about 4000 dollars less, groceries are cheaper. you can pay for the bridge, the gas and still save money. Those that shop on the mainland have been paying the HST and still find it less expensive. why would anyone shop at one of these businesses here unless they absolutely had to?

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    • Bill Kays
      Bill Kays
      - March 11, 2013 at 15:24:06

      The reason to buy local is to save our Island businesses. By being selfish and shopping off Island you are in essence biting off your nose to spite your face. You would be the reason small store owners have a tough time to make a go of it here But let's not put all of the blame on you as there is lots to go around. By buying at Walmart, other big stores etc. and not buying at your smaller local retailer you are killing the Island. Yes, times are very tough economically but, just think the next time you are buying something, who manufactured this, where else can I buy it, can I get it at a local small shop for a few pennies more, why isn't this product being manufactured and sold locally? etc., etc. People complain about the prices of things without realizing that they themselves are the cause of increaased prices by not supporting the local economy. What is going to happen when the CHINESE SLAVE LABOR products become unavailable. Will we then start to manufacture things again, because that is what is wrong with our throw away society.

  • Username
    shirley
    - March 11, 2013 at 14:07:02

    I agree with Angry Consumer. Most islanders bought clothing and foot wear here to save on taxes but now will purchase them when travelling and why not the retailers do not care how their customers feel about this they forget the customers are who pays their paychecks without sales there will be no job or pay check.

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  • Username
    don't whine, do something.
    - March 11, 2013 at 14:02:09

    This government expects us to behave like stupid sheep, but there's a way to get their attention. The citizens revolt - our only real response to the HST is to "barter" off the price of the HST at point of purchase. Whatever you buy, just say. "Okay, I'll buy it if the cost of the added HST is removed." You'll be surprised how many stores will be willing to accommodate this request. The trick is, you have to be willing to walk away if the business cannot accommodate the request . . . and that takes guts.

    Submit a comment

    • Username
      SAP
      - March 11, 2013 at 14:36:31

      Good idea, screw the store owner, instead of the government who brought he tax in after they promised not to. A better revolt would be to do what they did in BC, and had the tax repealed. The government here steamrolls whatever it wants.

  • Username
    I'll buy that item if you adjust the price . . .
    - March 11, 2013 at 13:53:50

    I was just told my gym membership is going to be increased. Hockey fees also going up. Is this a good tax that promotes healthy choices? One thing we all can do, if we can transcend the awkwardness, is to ask for a deduction for the item or service we're purchasing. For a number of years we did this when a certain Liberal government brought in the 7.5% cutback. And it worked! To be honest, it was very embarrassing by times, and a few times I had to walk away from the purchase. But boy, when it worked, it felt good on so many levels!

    Submit a comment

  • Username
    voter
    - March 11, 2013 at 13:53:14

    buy on line ---better deals ---not as many jacked up prices- there is one men's clothing store in town that doesn't have a REGULAR PRICE ever!!! just has a day after day 20% off and a bit more if you know how to haggle !! their prices are jacked up to cover for the false discount !! same goes for these repetitive local flyer 50% or more off deals

    Submit a comment

  • Username
    Retails Should Be Concerned
    - March 11, 2013 at 13:36:50

    I know that any incentive I ever had to purchase clothing and footwear in this province is gone with the introduction of the HST. To my advantage not only do I like to shop but I like to travel and so will do my clothing and footwear shopping out of province as of April 1st.. If I must pay additional taxes I am at least going to shop where the better selections are and deem some benefit for the extra cash out of my pocket. Another bonus in doing so is I wouldn't be supporting the government that came up with this 'bright idea'.

    Submit a comment

  • Username
    Happy Shopper
    - March 11, 2013 at 13:18:43

    It goes like this. I shopped local because there was no HST on clothing. I had friends and relatives from NB and NS who brought their kids here for shopping trips for their teenaged kids because no HST. Well, now they won't come, and because I love a good trip, I will head south of the border for my clothing shopping. The money I save will pay for the trip! Sorry retailers, you are a little late in complaining. Your silence did nothing to impress me, and your clothing is all 'so the same' as each other. Off I go to Bangor, Portsmouth, and Kittery. The trip is worth it because the bargains are so good and I don't worry about parking and have a bit of a getaway too. Retailers should have been yelling as loud as I was when the dreaded HST was first announced.

    Submit a comment

  • Username
    bob from cardigan
    - March 11, 2013 at 13:12:13

    The Chambers of Commerce has become a political tool over the years. I would suspect that their memberships have dropped or will be dropping as they don't represent the majority of business in PEI. Of course the HST will hurt every day Islanders in their pocket books. This is a bad tax for a province the size of PEI.

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  • Username
    Bud
    - March 11, 2013 at 13:06:33

    I already shop off island, no concern to me. Unless you are buying from Wal-mart all clothing retailers are highly overpriced. Less expensive to shop online even when you include shipping and sometimes duty.

    Submit a comment

  • Username
    Where were they?
    - March 11, 2013 at 13:02:23

    Of course the clothing stores will be affected. Why weren't they more vocal when this whole HST business was raised? They just allowed special interest groups to influence government policy and now they've woken up? The HST was a bad tax from the get-go. Just a tax grab on the backs of the poor and fixed income earners. But, I don't have a lot of sympathy for the clothing stores because they've been asleep at the wheel.

    Submit a comment

  • Username
    Angery Consumer
    - March 11, 2013 at 12:55:32

    Not only will they lose the advantage to off Island customers, I feel the middle income customers on the Island will look to shop elsewhere. I know myself when I go over to Moncton at Christmas time for my "shopping trip" I would never set foot in the clothing and shoe stores we had on the Island for the simple reason I refused to pay the extra tax on it. Now I will gladly shop in Moncton for clothes and shoes when I go over. Sorry, but I truely think the retail section on this Island is going to suffer from a huge hit when the HST comes into play. Not only are items increasing in tax (9% increase vs the 1.5% decrease) with everyday living costs increasing I will have less disposable income to shop in the first place... and I am sure I am not the only one. The other "joke" as far as I am concerned is the business that will end up lowering their prices (according to the government) - Maritime Electric prices have increased, my hairdresser has already increased her prices and a business in the service industry that I was planning on dealing with is taking the opportunity to increase their fee on April 1st (along with the tax on their prices).... So much for that theory politicians.....

    Submit a comment

    • Username
      Agreed
      - March 11, 2013 at 14:24:18

      I think you are right on the money. Any time we've gone to NB or NS we've never gone into a clothing store unless it something we cannot get here. Now with the playing field level, I think a lot of Island clothing outlets will see a big change. I don't care what these politicians are saying, this is nothing more than another grotesque tax grab, followed by an increase to their salaries. So for those that don't think we pay enough taxes, here's the markers. If you work for a living you pay personal tax of 15%-29% federal tax plus another 9.8% - 16.7% PEI taxes, so before you've even got your pay cheque you've handed over somewhere between 24.8% and 45.7%. Now you want to buy something, subtract another 14% (April 1st). Plus there are additional taxes on products such as gas, along with all the "service fees" ie drivers licenses, license plate, so on and so on.

  • Username
    intobed
    - March 11, 2013 at 12:29:47

    The mere fact that the local Chambers of Commerce has endorsed this hated HST tax, even though it will hurt most ordinary Islanders, has shown what local companies think of their fellow Islanders - money trumps all. I am trying to not support ANY retailer on PEI as a result, just to spite you greedy business people, and I invite all Islanders to join me. Boycott buying local.

    Submit a comment

    • Username
      HST Fan
      - March 11, 2013 at 13:25:24

      Go to New Brunswick. You'll feel right at home with the Islanders who have no problem paying the HST at the Champlain Mall and at the Cosco in Moncton. Lots of Island plates there yesterday.

    • Username
      Down Easter
      - March 11, 2013 at 13:26:47

      You poor fellow. You seem obsessed with the HST.

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