Federal government announces ‘GST Holiday’ for two months starting in December

Canadians are set to receive a temporary tax break on essential items like groceries and toys, just in time for the holidays.

The tax break, which will last for two months, applies to the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) across Canada. The government says it’s meant to help make life more affordable.

Prime Minister Justin Trudeau says the goal is to help lift some worry that may be on people’s mind.

From December 14, 2024 to February 15, 2025, they will remove the GST and HST on 100% of groceries, on restaurant meals, takeout and fast food, beer and wine, essentials like children’s clothing, footwear and diapers, and toys.

Trudeau also says a cheque will also be sent to millions of Canadians that worked last year.

This new “Working Canadians Rebate,” is to be sent in April.

The tax relief and rebates aim to address affordability concerns, costing $1.6-billion overall. Families spending $2,000 on eligible goods could save $100 during this period.

(Written by: Emily Chatwood)