OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to scrap its 18 per cent import tax on costumes so Canadians and small businesses can better afford Halloween.
“Do the feds expect little Frankensteins to pony up their chocolate bars and smarties to pay for this trick or treat tax hike?” said Franco Terrazzano, CTF Federal Director. “Taxpayers don’t need border bureaucrats wasting time and money testing Halloween costumes for their quality and craftsmanship.”
Importers of clothing classified as “fancy dress” must pay an 18 per cent tariff.
Calgary’s Costume Shoppe store has been operating in the city for nearly 25 years. The federal government is now hitting the store with fees retroactively back to 2021. Previously, costumes were exempt from the tax as “festive wear.”
“A Calgary costume business says it’s wrongfully being charged import duty fees estimated at more than $100,000 following a recent tariff decision made by the Canadian Border Services Agency,” CTV News reports. “Costumes [are] no longer considered ‘festive wear’ imports and instead are now classified as ‘fancy dress’ imports.”
“Families and businesses are already having a really tough time and now the feds want to make dressing up and trick or treating more expensive?” said Kris Sims, CTF Alberta Director. “The government needs to reverse these charges and scrap this trick or treat tax hike.”
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