Canadians have clearly had enough of SHT (Second-Hand Tax) and thousands have helped to push an initiative by IKEA Canada to end the tax on used items past its initial goal.
On March 22, the global home furnishing brand launched a petition on Change.org titled “End the Double Tax on Second-Hand Items.” Now, more than 35,000 people have signed it.
“Second-hand items may lose their original look, packaging, price, and value. But there’s one thing they never lose: the tax. IKEA Canada is calling for change so that Canadians don’t have to pay tax twice on second-hand items,” read a statement from the brand.
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So what even is second-hand tax?
This means that if someone bought a $100 table with $5 in HST and then decided to return it, the same table should not be resold by a business with a 5% HST once again.
“With inflation and rising costs of living, this undue double tax needs to end, especially at a time when Canadians simply can’t afford it and when shopping circular is more important than ever,” reads the statement.
It really is a bad time for Canadians financially. Bankruptcies are at a four-year high, and housing affordability is the top worry for most.
Consequently, the company is urging the federal and provincial governments to end taxes on used items.
The petition, which could potentially change the way we thrift shop, has struck a chord with Canadians.
When Daily Hive first covered it on April 7, the petition had over 1,500 signatures, with a goal of 2,500. However, it quickly exceeded that goal.
The petition had 1,512 signatures out of its 2,500 goal on April 7. (Change.org)
With the movement gaining momentum, IKEA Canada expanded the target from 2,500 signatures to 15,000. It was met in early April.
By April 10, the company had moved the goal post to 25,000.
Currently, the petition has more than 35,000 signatures, and the new goal post is 50,000.
Change.org
“This discourages a healthy and sustainable buying option,” wrote one commenter.
“Hats off to IKEA for taking the lead on this unfair taxation issue,” stated another.
Someone else commented, “It is wrong for people to pay tax twice on the same item.”
“If the goal is to create a sustainable future for all Canadians by putting money back in pockets and eliminating waste, this is the place to start,” wrote one signee.
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“Paying tax on [the] same item twice is gouging when Canadians can least afford it,” stated one commenter. “[Paying] tax on used items pushes sustainability further away. No wonder people order from China for extra cheap goods that overload our landfills.”
IKEA’s Sell-Back Program allows people to resell their used IKEA items to the company, bringing in as much as 50% of the original value. Shoppers can then buy these items in the As-is section at an IKEA store.
According to the Canada Revenue Agency, New Brunswick, Newfoundland and Labrador, and Nova Scotia pay the highest rates for used goods, at 15%. In Ontario, that rate is 13%, while in BC, it’s 12%. GST in the rest of Canada is 5%.
What are your thoughts on this issue? Let us know in the comments.
With files from Daily Hive’s Irish Mae Silvestre