The Ford government has announced an additional tax break for Ontarians just as the two-month federal tax break legislation is expected to be passed.
On Wednesday, Ontario’s Finance Minister announced that it will be matching the upcoming Federal holiday tax break by removing provincial sales tax (PST) from all items not covered by existing provincial rebates.
“Following extensive discussions with the federal government about how we can continue to work together to advance Ontario’s priorities, the provincial government will match the federal government’s two-month GST holiday by removing our portion of the HST from items not currently covered by existing provincial rebates,” Ontario Finance Minister Peter Bethlenfalvy’s office said in a statement to Now Toronto.
The statement says the temporary PST removal will provide nearly $1 billion in additional relief for Ontario families.
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This announcement comes just before the federal Goods and Services Tax/Harmonized Sales Tax (GST/HST) tax break is expected to be passed on Thursday night after Finance Minister Chrystia Freeland introduced the bill to the House of Commons on Wednesday afternoon.
The tax removal will be apply to holiday essentials including groceries, takeout or dine-in meals, beer and wine, diapers, books, children’s clothing, and gifts such as toys and games, from Dec. 14 until Feb. 15, 2025.
According to the Canadian government, the tax break will provide an estimated $1.6 billion in federal tax relief.
Working Canadians can also expect a $250 rebate cheque in spring 2025, for those who worked in 2023 and earned up to $150,000 in individual net income.
Jagmeet Singh, leader of the NDP, shared a statement on Wednesday demanding that the Trudeau government also provide the $250 rebate cheque to seniors, people with disabilities, and injured workers.
The PST tax break is expected to come into effect in Ontario for the same two-month federal tax break time period, from Dec. 15 to Feb. 15, 2025.
