Federal industry officials turned to Value Village for guidance on affordability and thrift, according to Access To Information records that show senior bureaucrats meeting with the for-profit second-hand retailer to discuss pricing strategies and tax policy.Blacklock's Reporter says a departmental briefing note prepared for the deputy minister of economic development said officials wanted to know how Value Village keeps prices low while operating as a profit-driven thrift chain and whether those approaches could shape federal programs aimed at helping Canadians cope with rising costs.“What strategies has Value Village used to maintain affordability while operating as a for-profit thrift retailer, and how could those strategies inform federal programming?” the meeting note asked.According to the memo, the retailer itself requested the meeting, pitching thrift stores as a tool to help Canadians access affordable goods while reducing landfill waste. The discussion was also expected to touch on GST treatment for thrift stores.Value Village, headquartered in Bellevue, Washington, operates 353 locations across Canada, the United States, and Australia, with annual sales exceeding US$1.6 billion..Officials noted the company partners with community non-profits by paying for donated goods, distinguishing it from charity-run thrift stores. “Unlike charity and non-profit stores like Salvation Army, Value Village resells donated goods for profit with a portion of revenue going to non-profit organizations,” the memo said.At the same time, the department acknowledged Value Village may be seeking relief from federal sales tax. As a for-profit company, Value Village is required to collect GST on sales in Canada, unlike some non-profit operators.“Value Village might seek a reassessment of this tax policy or targeted relief measures,” the memo said, adding that any discussion of GST would fall under the authority of Finance Canada and the Canada Revenue Agency.“The sale of new, used or donated goods in a second-hand store operated by a non-profit organization or for-profit organization are generally taxable and GST would have to be collected on these sales,” the briefing note stated. It did not estimate how much tax the retailer remits..Parliament last year approved a one-time, 90-day GST holiday on select items under Bill C-78, a $2.7 billion measure billed as temporary cost-of-living relief. Thrift store purchases were excluded.Then-finance minister Chrystia Freeland described the tax break as a Christmas boost for families under pressure from inflation. “Now is the right time for all of us to proactively take that step,” Freeland told the Senate national finance committee. “Let’s help the people.”Items exempted from GST under Bill C-78 included beer, Bibles, board games, children’s footwear, natural and artificial Christmas trees, printed newspapers, restaurant meals, takeout food, video game consoles, and wine.
