Book tax can’t go soon enough, shop owners say
Finance minister takes steps to see tax change Jan. 1
The owner and operator of Broken Books had a dire prediction in December 2016, based on the province’s then-incoming book tax, a change leaving customers paying 10 per cent more for books at local stores.
“This tax will very likely put me out of business,” Matt Howse wrote in a letter to the editor.
Now, the tax is set to be axed. The Liberal government has promised the tax will be revoked Jan. 1, 2018.
The Telegram spoke with Howse Tuesday at his shop in downtown St. John’s, where he remains in business, despite what he described as a devastating year to date.
“All in all, my dollar value sales are down by about 25 per cent,” he said, while adding not all of it can be attributed to taxation. Some of it is current consumer mindset and the local economy, he said, some even construction near his storefront, but some of it was absolutely the book tax.
Early in the year, he decided to split his existing space off Duckworth Street with another business: Rock, Paper, Flowers. The move was a means of survival.
Howse said the costs from the tax change slapped on his customers and his business this year were unnecessary, and completely within the control of the government.
“I think they knew how bad it was, how foolish it was and I think now they’re just trying to save face,” he said.
“It’s going to take me a while to bounce back,” he said, adding he’s still not convinced the government will live up to its commitment to remove the tax.
Further along Duckworth Street at Afterwords used bookstore, David Benson was overseeing one of the final days for his shop, with people picking free books from the shelves.
“It probably would have shut us down if we hadn’t had other problems,” he said when asked about the book tax.
Benson said it never made sense, and simply encouraged more consumers to buy online. Unlike with local shops, he said, money sent to large, online booksellers doesn’t circulate in the community and that was never taken into account.
To date, he remains dissatisfied with answers provided to his questions about the tax.
Meanwhile, Finance Minister Tom Osborne has taken steps required in order for the book tax to go away on New Year’s Day.
There was a requirement for notice to be provided to the federal government 120 days ahead of time. That notice was given in August, according to the department of finance.
There is another requirement for the change to go through the House of Assembly. This would normally happen with the passing of a budget, but the change — set for Jan. 1 — is ahead of the release of the next budget. As a result, Osborne provided a notice of motion in the House last week.
Members are currently away from the House, handling constituency work, but will be back in session next week, when the book tax is expected to be settled.