Trudeau plays Santa Claus to win back votes, scraps Goods and Services Tax on select items this holiday

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Prime Minister Justin Trudeau announced a temporary suspension of the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) on essential items for the holiday season, aimed at providing financial relief to Canadians. This break will run from December 14, 2024, to February 15, 2025, covering items such as groceries, children’s clothing, footwear, diapers, restaurant meals, and holiday gifts.

This initiative is part of a broader strategy to ease cost-of-living pressures. The government estimates the tax relief will amount to $1.6 billion in savings for consumers. Trudeau also revealed plans for a $250 rebate to Canadians who worked in 2023 and earned up to $150,000. This Working Canadians Rebate will be distributed in early spring 2025, further supplementing the holiday season relief.

The move, designed to bolster the economy and alleviate financial strains, is still pending approval in the House of Commons.

Sure! Here’s the list of items that will be exempt from the GST/HST from December 14, 2024, to February 15, 2025:

Groceries

Fresh, frozen, canned, and vacuum-sealed fruits and vegetables
Breakfast cereals
Most milk products
Fresh meat, poultry, and fish
Eggs
Coffee beans

Food and Beverages

Prepared foods (e.g., vegetable trays, pre-made meals)
Snacks (e.g., chips, candy, granola bars)
Carbonated beverages, water bottles, fruit juices, juice crystals
Ice cream products and baked desserts (e.g., cakes, pies)

Children’s Items

Clothing (e.g., baby bibs, socks, hats, footwear)
Diapers and diaper inserts
Car seats
Toys (e.g., board games, dolls, card games, Lego, Plasticine, teddy bears)

Other Items

Restaurant meals (dining in, takeout, delivery)
Alcoholic beverages below seven percent alcohol by volume (beer, wine, cider, pre-mixed drinks)
Print newspapers
Printed books and audio books (where 90% or more is a reading of a printed book)
Christmas trees and similar decorative items