With the HST in place, fewer people are taking the plunge into renovating their homes. One store in Ottawa is giving customers $500 back for every $10,000 spent.
"For people that maybe are/had plans to renovate but are more reluctant, (this may) just maybe help them out a little bit, ease the sting a bit," said Jessica Mallett, at Westend Bath and Kitchen.
Appetite for spending diminishes
The HST took effect two weeks ago, adding an extra eight per cent to a list of goods and services. Experts say it is already suppressing people's appetites to spend.
"Based on the surveys we do with shopping, talking to retailers, talking to people in the development industry, just about all of them are reporting business has slowed down significantly," said Barry Nabatian of the Market Research Group.
"As soon as taxes are increased, people cannot identify which items are affected, so people feel everything it goes up. It's hard to keep track.
Real-estate slowdown
In real estate, the market has cooled off after a busy spring.
"People were buying before July 1 so they wouldn't have to pay HST on lawyers' fees, real estate fees, moving costs, things like that," said Rick Snell of the Ottawa Real Estate Board.
The HST has also fuelled Ontario drivers to come fill up in Gatineau. For the first time in as long as they can remember, gas is now cheaper on the Quebec side of the bridge.
"It's only a few cents; it's more principle more than anything," said Ottawa resident Marilyn Thibault.
"The HST has ticked me off so much. I think its' a money grab. I will come over to where I can get it cheaper."
With a report from CTV Ottawa's Vanessa Lee
