11/21/2024
Some new GST benefits might be coming your way!
Prime Minister Trudeau Announces Affordability Measures to Ease Post-COVID Challenges
Prime Minister Justin Trudeau unveiled new measures on Thursday aimed at addressing the rising affordability challenges Canadians have faced in the post-COVID era. Among the initiatives is a temporary GST holiday on select goods and services, as well as direct financial support for millions of working Canadians.
As part of the plan, the government will send a $250 payment to approximately 18.7 million Canadians who earned $150,000 or less in 2023. Dubbed the “Working Canadians Rebate,” these payments are expected to arrive in early spring 2025.
The GST/HST holiday will take effect on December 14, 2024, and will run until February 15, 2025. During this period, Canadians can enjoy tax-free purchases on the following eligible goods and services:
• Prepared foods, such as vegetable trays, pre-made
meals, salads, and sandwiches.
• Restaurant meals, including dine-in, takeout, and delivery.
• Snacks like chips, candy, and granola bars.
• Alcoholic beverages under 7% ABV, including beer, wine, cider, and pre-mixed drinks.
• Children’s items, including clothing, footwear, car seats, and diapers.
• Toys, such as board games, dolls, and video game consoles.
• Books, print newspapers, and puzzles for all ages.
• Christmas trees.
With these exemptions, nearly all food items in Canada will be tax-free.
For provinces with the Harmonized Sales Tax (HST), which combines GST with provincial sales tax, the savings for consumers will be even more significant, according to the government.
These measures aim to provide tangible financial relief for Canadians, helping them navigate the ongoing cost-of-living pressures.
