By Abiola Olawale
The Canadian government has announced the introduction of legislation that would ensure a two-month tax break for residents in the country.
The policy, a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST), is expected to help Canadians buy the things they need and save for the things they want, the government announced.
The government is proposing that the GST/HST be fully and temporarily relieved on holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts, from December 14, 2024, to February 15, 2025.
This was announced by the Prime Minister of Canada, Rt. Hon. Justin Trudeau.
Trudeau stated: “Our government can’t set prices, but we can give Canadians, and especially working Canadians, more money back in their pocket. With a tax break for all Canadians and the Working Canadians Rebate, we’re making sure you can buy the things you need and save for the things you want.”
Businesses are expected to remove the GST/HST on qualifying goods at checkout as of December 14, 2024.
Below is the list of items the new tax break will apply to:
• Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.
• Restaurant meals, whether dine-in, takeout, or delivery.
• Snacks, including chips, candy, and granola bars.
• Beer, wine, cider, and pre-mixed alcoholic beverages below 7 per cent ABV.
• Children’s clothing and footwear, car seats, and diapers.
• Children’s toys, such as board games, dolls, and video game consoles.
• Books, print newspapers, and puzzles for all ages.
• Christmas trees.
