On November 21, 2024, Ottawa announced a tax holiday in hope that it will come into effect from December 14, 2024, to February 15, 2025. Certain products will be exempt from the 5% Goods and Services Tax (GST).
This tax cut will be relevant to:
- Prepared foods, including vegetable trays, pre-made meals, 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 with an alcohol content below 7% 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
The GST was first introduced in Canada on January 1, 1991, with the goal of abolishing the old 13.5% Manufacturers’ Sales Tax (MST), which was harming Canadian exports.
Also, in April, a $250 cheque will be sent to Canadians who earned up to $150,000 in 2023. “Our government cannot set prices at the checkout, but we can put more money in Canadians’ pockets,” said Prime Minister Justin Trudeau during a press conference. “The $250 Canada Workers Rebate that will be sent to people in April will provide the relief they need, and the tax holiday over the next two months will help as the holidays approach.”
Some politicians say that Trudeau did that to secure additional votes for the upcoming elections. “Justin Trudeau is in a position of desperation […] He will do anything to save his job.” said the leader of the Canadians’ Conservative Party, Pierre Poilievre.
Poilievre calls Trudeau’s temporary GST cut a ‘tax trick’ and he says that it will not compensate Canadians for the costs of the carbon tax. “Today, what we have is a two-month temporary tax trick that will not make up for the permanent quadrupling carbon tax on heat, housing, food and fuel. And all to save Justin’s job.”
Jagmeet Singh, leader of the New Democratic Party (NDP), plans to make the GST break permanent if he becomes Prime Minister in the upcoming federal election in fall 2025. “When I’m Prime Minister, I will make it permanent,” he said.
