Prime Minister Justin Trudeau’s two-month tax  holiday on “essential goods” could cost the government more than $2.7 billion if provinces with harmonized sales tax aren’t willing to chip in. The parliamentary budget officer estimates the federal portion of the tax break will reduce revenue by $1.5 billion, which is similar to the figure the finance minister initially projected. But Ottawa will have to forgo an additional $1.3 billion if Ontario and Maritime provinces demand the compensation they’re owed as part of their harmonized tax agreements. (The Logic)

Talking point: Ontario Premier Doug Ford already said he’s on board with Trudeau’s tax break and won’t ask to be compensated for the lost revenue. Newfoundland and P.E.I. have signalled the same. Finance Minister Chrystia Freeland has urged all provinces to forgo sales taxes on essential goods for the next two months. Small businesses aren’t all sold on the idea though. A recent member survey by the Canadian Federation of Independent Business found the GST holiday would be costly and complicated for three-quarters of those affected, and two-thirds said they won’t be able to make the necessary changes in time.