In an effort to provide some holiday relief for Canadians, the government is proposing a two-month tax break on essential items starting in December.
On Thursday morning, the Trudeau government announced that it will be introducing legislation to Parliament for a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for groceries and holiday essentials to help Canadians save money during the holiday season.
Under the proposed legislation, holiday essentials including groceries, takeout or dine-in meals, beer and wine, diapers, books, children’s clothing, and gifts such as toys and games, will be GST/HST free from Dec. 14 until Feb. 15, 2025.
A full list of the items included in the tax break are listed on the Government of Canada website.
“Canadians work hard, we see that. We’ve been able to get through the past couple of years,” Trudeau said Thursday in a press conference. “Canadians have had to tighten their belts a little bit, now we’re going to be able to give a tax break for all Canadians,”
The GST tax break will provide an estimated $1.6 billion in federal tax relief, according to the news release.
“The government can’t set prices at check out, but we can put more money in Canadians’ pockets,” Trudeau said.
If the tax break is passed, businesses are expected to remove all GST/HST on qualifying goods at checkout.
The relief would apply to the goods that are delivered to the buyer and paid for within the tax break period.
The GST/HST tax would also be fully removed on importation of the goods included in the tax break, if the items are imported during the two-month period.
Trudeau also announced a rebate for 18.7 million Canadians to be received in 2025.
Read More
READ MORE:
Canadians who worked in 2023 and earned up to $150,000 in individual net income, will receive The Working Canadians Rebate, which will come in the form of a $250 direct deposit or cheque in early spring 2025.
To be eligible for the rebate, Canadians must have filed their 2023 tax return by Dec. 31, 2024, as well as be a Canadian resident on March 31, 2025.
“Money will help buy the things they need and save up for the things they want,” the Prime Minister said. “And a final note is that I really hope that all parties in the House get behind this and we can pass this quickly so that Canadians can get relief as soon as Dec. 14.”
In October, Ontario Premier Doug Ford announced that Ontarians will receive a $200 rebate cheque as part of the provinces’ fall economic statement. The rebates are expected to be issued early next year.
