Home Business & Economy Affordability GST consumer tax holiday to start Dec 14

GST consumer tax holiday to start Dec 14

Applies to consumer purchases during Dec 14, 2024 to Feb 15, 2025.

grocery store, prepared foods
Prepared foods will not be subject to the 5% GST during two-month tax holiday starting December 14, 2024.
ISLAND SOCIAL TRENDS Holiday Season COMMUNITY CALENDAR

Thursday November 21, 2024 | NATIONAL [Posted at 8:56 am | Updated at 12:44 pm]

by Mary P Brooke | Island Social Trends

Also see ANALYSIS: GST winter tax holiday misses political mark, frustrates businesses, and fails many families (Nov 23, 2024)


A specific measure to ease the pressures on consumers over the year-end holiday season has been brought forward by the federal government.

A tax holiday from the 5% GST on a range of consumer goods will come into effect for two months starting December 14, 2024 (to February 15, 2025).

cooked chicken
Cooked chicken as sold at grocery stores.

There will be no GST charged on these items: (list as posted on the Prime Minister’s website)

  • Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.
  • Restaurant meals, whether dine-in, takeout, or delivery.
  • Snacks, including chips, candy, and granola bars.
  • Beer, wine, cider, and pre-mixed alcoholic beverages below 7 per cent ABV.
  • Children’s clothing and footwear, car seats, and diapers.
  • Children’s toys, such as board games, dolls, and video game consoles.
  • Books, print newspapers, and puzzles for all ages.
  • Christmas trees.
SEAPARC, holiday season, events, 2024

One-time bonus in April 2025:

A one-time bonus of $250 will be paid out

Eligibility is to persons who worked in 2023 and earned up to $150,000.

mental health over the holidays, virtual workshop

Trudeau & Freeland:

“We can’t set prices at checkout  but we can put money back into peoples’ pockets,” said Prime Minister Justin Trudeau today. “We recognize that people are squeezed and we’re here to help,” he said in a press conference this morning.

justin trudeau, chrystia freeland
Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland announce GST tax holiday, on Nov 21, 2024. [CPAC]

“Things are getting a little bit easier because we have the space now to do it,

“Things have been hard, they’re getting better,” said Chrystia Freeland today.

“The Canadian economy is particularly sensitive to high interest rates,” said Freeland, noting that most mortgages have a five-year term.

xmhas holidays, tree, friends
Events at Christmas time with friends.

House of Commons vote:

“I hope all parties get behind this so we can pass this quickly, so all Canadians can get this relief on December 14,” said Trudeau.

He expects the NDP will support the government’s motion to activate the 2024 GST tax holiday and rebate bonus for working Canadians in April 2025.

“The NDP will vote for this measure because working people are desperate for relief, and we’re proud we delivered for them again,” said Singh in a statement yesterday.

Alistair MacGregor, MP, Cowichan-Malahat-Langford, constituency services

“A frozen parliament doesn’t work for Canadians,” said Trudeau today about moving forward on this tax break and the work of parliament after this.

NDP led this initiative:

“The NDP is delivering a winter tax holiday to Canadians. The prime minister’s office just informed us that he’s caving to our Tax-Free-Essentials campaign — partly,” said NDP Leader Jagmeet Singh yesterday.

“The NDP committed to removing the GST from daily essentials and monthly bills. While Pierre Poilievre’s Conservatives are focused on themselves, New Democrats fought for affordability because everyday families are working harder than ever but still cutting back their grocery list and cancelling activities their kids love. We are the party of working people, and we’re sick of billionaires getting tax breaks while regular families pay the price for years of inflation,” said Singh in a new release on November 20.

serious coffee view royal

Today’s tax relief is “far from the substantial and permanent relief the NDP wants to give Canadians”, said Singh.

“Like we already promised” the NDP will campaign on permanently scrapping the GST on daily essentials and monthly bills.

Retailers:

Retailers and other businesses will need to time adapt their point-of-sale programming and other billing processes, hence the mid-December date. This means that the tax holiday is not available on ‘Black Friday’, or in the first half of December.

ist main, bc cabinet
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===== RELATED:

GST winter tax holiday misses political mark, frustrates businesses, and fails many families (Nov 23, 2024)

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