To provide tax relief to Canadians who are dealing with cost-of-living concerns, Prime Minister Justin Trudeau announced on Thursday that the federal government is proposing that the GST/HST be fully and temporarily removed on holiday essentials, like groceries, restaurant food, drinks, snacks, children’s clothing, and gifts, from December 14, 2024, to February 15, 2025.
GST HST Tax Break Canada
On 21 November, 2024 Prime Minister Justin Trudeau announced that “starting from December 14, the government is going to give tax breaks to all Canadians. With a GST/HST exemption across the country, Canadians will be able to buy essentials like Prepared foods, grocery items, children clothes, restaurant meals, drinks, snacks, gifts, etc.
The GST/HST tax break is going to start from 14 December 2024 and will come to an end on 15 February, 2025. The government will also deliver $250 cheques to more than 18.7 million Canadians who worked in 2023 and earned equal $150,000 or less. It is expected that these cheques, also called “Working Canadians Rebate,” will arrive in early spring of 2025.
How much money can you save?
GST tax breaks from the eligible goods for two months will provide more than $1.6 billion in federal tax relief. For instance, A family who spends $2,000 on qualifying items, such as children’s clothing, shoes, toys, diapers, books, snacks, or restaurant meals would make up to $100 GST savings over the two-month period.
In provinces where the HST (where the GST is harmonized with provincial sales tax) will also be removed, the savings will be larger, the government said. Provinces with the HST are Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. For instance, In Ontario, the same $2,000 basket of qualifying purchases realize HST savings of $260 over the two-month period.
Who is eligible for the GST/HST tax break in Canada?
Everyone wants to know about the eligibility criteria of the GST HST tax break in Canada. Keep in mind that the temporary GST/HST tax break in Canada only applies to all individuals who purchase eligible items during the specified period. The GST/HST tax break will run from December 14, 2024, to February 15, 2025.
There are no specific eligibility requirements based on income, number of items, residency disclosed by officials yet. It is expected that Canadians who will purchase qualifying goods such as groceries, restaurant meals, children’s clothing, and toys can get the benefit from this tax break.
What are the Qualifying Goods for the GST/HST tax break in Canada?
The full list of qualifying goods that would be eligible for the proposed GST/HST tax break in Canada are listed below.
- Alcoholic beverages including wine, beer, ciders, and spirit coolers up to 7 per cent ABV (excluding spirits).
- Carbonated beverages or non-carbonated fruit juice and fruit flavoured beverages and such products that produce one of these beverages when mixed in water.
- Salty snacks such as chips, crisps, brittle pretzels, puffs, curls, sticks, popcorn,and salted nuts and seeds.
- Candies like candy floss, chewing gum, and chocolate, as well as fruits, seeds, nuts or popcorn coated with candy, chocolate, syrup or artificial sweeteners, honey, molasses, sugar.
- Ice cream, ice milk, sherbet, Ice lollies, juice bars, ice waters, frozen yoghurt or pudding, including non-dairy items.
- Granola products and snack mixtures that hold cereals, dried fruit, nuts, seeds, and other edible products
- Fruit bars, rolls or drops and similar fruit-based eatables.
- Cakes, pies, pastries, tarts, muffins, cookies, doughnuts, brownies, croissants with sweetened filling or coating.Pudding that carries mousse, flavored whipped dessert product, flavored gelatine , or all other products similar to pudding.
- Prepared salads, fruit or vegetables, sandwiches, platters of cheese, cold cuts, and other arrangements of prepared food.
- Bottled or unbottled water that is distributed at a permanent establishment of the supplier.
- Children’s toys: including products that are designed for use by children under 14 years of age in learning or play such as strategy board games, playing cards, or building blocks, doll houses, teddy bears, toy cars, etc.
- Jigsaw puzzles
- Video-game consoles, controllers and physical game media (including video-game cartridge and disc).
- Christmas trees and other decorative trees of both natural and artificial types.
- Print newspapers
- Print books and audio books
- Children’s clothing such as garments up to girls size 16 or boys size 20, baby bibs, bunting blankets, Hosiery or stretchy socks, hats, ties, scarves, belts, suspenders, or mittens and gloves, etc.
- Children’s footwear includes footwear that is designed for babies or children and has a maximum insole length of 24.25 centimeters or less.
- Children’s diapers include products that are designed for babies or children such as diapers, a diaper insert or liner, a training pants, or rubber pants made for use in conjunction with any of the previously discussed items.
