The past few years have posed significant challenges for Canadians, as rising costs have strained household budgets. Despite inflation returning to the 2% target and interest rates being cut five times this year, many Canadians are still not experiencing these improvements in their daily lives. In response to these financial pressures, the federal government has introduced measures to put more money into the hands of Canadians, helping them afford essentials and plan for their future.
Starting today, Canadians will benefit from a new GST/HST tax break announced by Prime Minister Justin Trudeau. This initiative eliminates GST/HST on essential items such as groceries, snacks, children’s clothing, and holiday gifts. The tax relief, which will last until February 15, aims to provide tangible savings and ease financial burdens during the holiday season. Items eligible for this tax break include prepared foods, restaurant meals, snacks, children’s toys and clothing, books, newspapers, and even Christmas trees.
The Minister of Small Business, Rechie Valdez, the Minister of Diversity, Inclusion and Persons with Disabilities, Kamal Khera, and Peter Fonseca, Member of Parliament for Mississauga East—Cooksville, emphasized the federal government’s commitment to making life more affordable. They highlighted that this measure not only helps Canadians save money on everyday essentials but also enables them to enjoy the holidays with family and friends without undue financial stress.
The government estimates that families spending $2,000 on qualifying items will save approximately $100 in GST over the two-month period. In provinces like Ontario, where the HST is also being removed from these items, families could save as much as $260 during the same timeframe. These savings provide immediate relief at the cash register, ensuring that Canadians feel the benefits of this measure as they prepare for the holidays.
The announcement aligns with the government’s broader affordability initiatives, including the National School Food Program, which aims to save families with two children up to $800 annually on grocery costs, and the Canada-wide $10-a-day child care system, which provides families with savings of up to $14,300 per child per year. Additionally, the Canada Child Benefit continues to support families with up to $8,000 per child annually, while the new Canadian Dental Care Plan offers critical coverage for children, seniors, and individuals with disabilities.
Rechie Valdez described the GST/HST holiday as a timely intervention, enabling Mississaugans and Canadians nationwide to keep more of their hard-earned money and focus on celebrating the season with loved ones. Similarly, the Honourable Kamal Khera noted that the measure would help families manage the often-hefty costs of the holidays while enjoying meaningful moments with family and friends. Peter Fonseca added that the tax break reflects the government’s commitment to alleviating financial pressures for Canadians as they head into the new year.
The initiative has also been welcomed by industry representatives. Kelly Higginson, CEO of Restaurants Canada, praised the move as a strategic step that not only helps Canadians afford meals and dining experiences but also provides a $1.5 billion boost to the restaurant sector during a challenging season.
As Canadians prepare to gather with loved ones over meals, exchange gifts, and make cherished memories, this GST/HST holiday ensures that families can start the new year with a little more money in their pockets and less financial strain. The government remains committed to supporting Canadians through targeted, meaningful actions that provide real relief and improve everyday life.
