TRURO - If early indications tell the tale, local shoppers appear to have accepted an increase to the harmonized sales tax with little complaint.
"I can't say really that I've had any negative feedback to the HST (increase)," said Chantale Hache, president of the Truro and District Chamber of Commerce.
The NDP government initiated a two-per cent increase – to 15 per cent – in the HST on July 1 to help it deal with the province's $488 million deficit.
But considering that Nova Scotians were given advance notice of the planned hike when the government tabled its budget last spring, Hache feels people had already resigned themselves to the increase before it arrived.
And while there certainly are exceptions, a number of local retailers agree with Hache's assessment.
"In all honesty, not one person has mentioned it," said Marc Plantin, manager of CRC RV Centre Ltd.
Plantin said a number of customers avoided the tax hike by making their purchases prior to July 1 but he said there was very little talk of it even then.
Kevin Crowell, manager of Don Smith Furnishings Ltd., also said while some people did their shopping before the increase, he has heard little about it since then.
Mike Michaud, manger of Berry's Furniture Plus, expressed similar sentiment.
"In July, the first seven to 10 days, we we're on fire," he said, of the sales activity. And that was without any major sales incentives.
Since then, Michaud said, sales have dropped off, despite the tax-free deals being offered.
From his perspective, that means shoppers are simply enjoying the summer as opposed to being in a shopping mood.
"I think it's the weather."
One businessman who does feel the HST has been detrimental, however, is Tom Kennedy of T. Kennedy Auto Sales, who said his July sales were "unbelievably slow" compared to the norm.
"I definitely think it had an impact," he said. "Any time a tax goes up it's not a help. It's a lot of money and it gets into every deal."
One area where Kennedy believes the increase will have the greatest impact is on out-of-province sales to New Brunswick residents, where the HST remains at 13 per cent.
"It's certainly a disadvantage," he said, adding he normally does receive a "fair amount" of out-of-province deals.
Hache believes retailers will not get an accurate reading on any potential impact the tax may have had until their summer sales can be fully calculated in the fall.
What she sees as a greater threat to small business, however, is when the final installment of the province's minimum wage comes into effect in October.
The minimum wage went up by 6.9 per cent to $9.20 per hour in April and is set to increase another 4.8 per cent to $9.65 per hour on Oct. 1.
And Hache´ said that has been the main concern expressed to her by local retailers.
"I haven't really noticed a big thing with the HST," she said, of the small business response, "but, boy in October when minimum wage goes up, again, that is really going to impact my business. So, they are really trying to redirect me back to that."
