Canada apparently have had enough of the Second-Hand Tax, with large numbers supporting IKEA Canada's initiative to eliminate the second-hand goods tax, surpassing its initial signature target.
On March 22 of this year, the global furniture brand launched a petition on the Change.org called "Abolition of Double Taxation on Second-hand Goods".
Currently, more than 35,000 people have signed the petition.
A statement from IKEA Canada reads: "Used goods may lose their original appearance, packaging, price and value, but there is one thing that will never be lost: taxes. IKEA Canada is calling for change so that Canadians don't have to pay taxes twice on second-hand goods. ”
So, what exactly is a second-hand tax?
This means that if someone buys a $100 table, pays $5 HST, and then decides to return it, the same table is sold again at 5% HST, which IKEA doesn't think should be.
"This undue double taxation needs to be eliminated amid inflation and the rising cost of living, especially when Canadaians simply can't afford it, and circular shopping is more important than ever," the statement said. ”
For Canada, the financial situation is really bad. Bankruptcy rates are at their highest level in four years, and housing affordability is a top concern for most people.
As a result, the company is urging federal and provincial governments to remove taxes on second-hand goods.
This petition, which could change the way we shop, resonates with Canada.
When the Daily Hive first reported on April 7, the petition had more than 1,500 signatures and a target of 2,500. However, this goal was soon exceeded.
As the movement gained momentum, IKEA Canada expanded its target from 2,500 signatures to 15,000. This goal was reached in early April.
By April 10, the company raised its target to 25,000.
Currently, the petition has more than 35,000 signatures, with a new target of 50,000.
One reviewer wrote: "This hinders a healthy and sustainable shopping choice. ”
Another commenter said: "Kudos to IKEA for standing up on this unfair tax issue. ”
Another commented: "It's not right to make people pay taxes twice on the same item." ”
One signatory wrote: "If the goal is to create a sustainable future for all Canadaians by giving money back to people and reducing waste, then this is a good place to start." ”
IKEA's buyback program allows people to sell used IKEA items back to the company for up to 50% of the original price. Customers can then also buy these items in specific areas of the IKEA store.
According to the Canada Revenue Agency, New Brunswick, New Finland and Labrador and Nova Scotia have the highest rates of 15 per cent for second-hand goods. In Ontario, the rate is 13%, while in British Colombia it is 12%. In the rest of Canada, the second-hand tax is 5%.
What are your thoughts on this issue?
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