The federal government is set to roll out a series of financial relief measures to ease the economic pressures on Canadians, particularly during the holiday season.
These initiatives include a temporary GST/HST break on groceries and holiday essentials from December 14, 2024, to February 15, 2025, and a $250 Working Canadians Rebate, which will be issued in early spring 2025.
GST/HST Bbreeak for holiday essentials and groceries
From December 14, 2024, to February 15, 2025, a temporary GST/HST tax exemption will apply to various everyday goods, making many GST/HST-free during the holidays. This two-month relief will cover groceries, children’s clothing, restaurant meals, gifts, snacks, and more.
The initiative is expected to save Canadians approximately $1.6 billion in federal taxes. A family spending $2,000 on qualifying goods like children’s clothing, snacks, and restaurant meals could save $100. In provinces with Harmonized Sales Tax (HST), like Ontario, families could see savings of up to $260 for the same spending.
Qualifying goods for GST/HST relief
The tax exemption will apply to a wide array of goods, including:
- Prepared foods like vegetable trays, pre-made meals, salads, and sandwiches.
- Restaurant meals—whether dine-in, takeout, or delivery.
- Snack foods such as chips, candy, and granola bars.
- Alcoholic beverages under 7% ABV, including beer, wine, and cider.
- Children’s essentials like clothing, footwear, car seats, and diapers.
- Children's toys include board games, dolls, and video game consoles.
- Printed books, newspapers, and puzzles.
- Christmas trees, both natural and artificial.
How It works at the checkout
Starting December 14, businesses will remove the GST/HST on qualifying items at checkout. This relief will also extend to goods delivered or paid for during the designated period and cover imports, allowing Canadians to enjoy savings on local and imported items.
$250 Working Canadians Rebate
The $250 Working Canadians Rebate is another significant financial support measure for workers. This rebate will be available to 18.7 million Canadians who meet the following criteria:
- Worked in 2023 with an individual net income of up to $150,000.
- Filed their 2023 tax return by December 31, 2024.
- Claimed relevant credits or reported income from the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), Employment Insurance (EI), or Quebec Parental Insurance Plan (QPIP).
- Must be residents of Canada as of March 31, 2025, and not incarcerated or deceased by April 1, 2025.
Eligible recipients will receive the rebate automatically through direct deposit or cheque in early spring 2025.
Long-term Economic Relief and Impacts
The government’s initiatives, including the Working Canadians Rebate and GST/HST relief, are part of a broader plan to alleviate financial pressures on families. The rebate is expected to provide an immediate financial boost to 18.7 million Canadians. At the same time, the temporary GST/HST exemption will ease costs at checkout, stimulate winter spending, and support the economy.
The tax break on items like clothing, toys, and food will make a substantial difference for families with children, particularly for those struggling with rising grocery and holiday-related expenses. These measures are intended to provide Canadians with the support they need during challenging economic times.
According to the federal government, the goal is to help Canadians manage the current economic landscape while ensuring they can afford holiday essentials and everyday necessities.
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