If You’ve Been Feeling the Pinch at the Checkout, There’s Some Good News Coming Your Way
This holiday season, the federal government is giving Canadians an early gift by offering significant tax relief. On Thursday, the government announced that starting in December, it will waive the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) on many everyday items. This move is expected to provide $1.6 billion in savings and help families during a time when costs are rising.
What’s Tax-Free This Holiday Season?
Starting December 14, 2024, and running through February 15, 2025, a wide range of essential goods will be exempt from GST and HST. Some of the items that will benefit from this tax relief include:
- Groceries: Prepared foods, including vegetable trays, pre-made meals, sandwiches, and salads
- Restaurant Meals: Whether dine-in, takeout, or delivery
- Snacks: Chips, candy, granola bars, and more
- Alcohol: Beer, wine, cider, and premixed drinks under 7% ABV
- Children’s Clothing: Including footwear, car seats, and diapers
- Toys: Board games, dolls, and video game consoles
- Books and Newspapers: Print versions, plus puzzles for all ages
- Christmas Trees: A festive treat to make your holiday shopping a little cheaper
How Much Can You Save?
The savings can add up quickly. For example, a family spending $2,000 on these items over the two-month period could save over $100 in GST alone. In provinces with HST, the savings could be even higher.
Additional Bonus for Working Canadians
In addition to the GST/HST relief, working Canadians who earned up to $150,000 in 2023 will receive a $250 Working Canadians Rebate in the spring of 2025. This rebate is designed to support middle-class families, with nearly 19 million Canadians set to benefit.
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Why This Matters
As Deputy Prime Minister Chrystia Freeland stated, the holiday season is one of the most expensive times of the year for many families. With this tax relief, the government aims to reduce the financial burden on Canadians when they need it most—during the busiest shopping months.
Whether you’re buying food for a holiday feast, toys for your kids, or snacks for a cozy night in, this GST/HST exemption is a welcome break that will make the season a bit more affordable.
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