To assist Canadians with their budgets, the sales taxes, GST and HST, will be temporarily removed across Canada on applicable items from December 14, 2024, to February 15, 2025.
A news article by the Government of Canada states, “The government is proposing that the GST/HST be fully and temporarily relieved on holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts. This tax break will make a meaningful difference for Canadians by making essentially all food GST/HST free, providing real relief at the cash register,”
This is generally positive news for Canadians, especially given the increase in expenses during the holiday season. “A family spending $2,000 on qualifying goods, such as children’s clothing, shoes and toys, diapers, books, snacks for the house, or restaurant meals would realize GST savings of $100 over the two-month period,” the government states.
However, opinions about the change vary. Pierre Poilievre, the leader of the Conservative Party of Canada believes the Liberal Party of Canada is setting this up to create a distraction. In an interview with CP24, he says, “What we know so far is that it’s a tiny, two-month tax trick to distract from Trudeau’s plan to quadruple the carbon tax on [heat, housing, food, and fuel] that will cost thousands of dollars to every single family.”
Many viewers seemed to agree with Poilievre, expressing their thoughts in the comment section. “Let’s not do a 2-month GST break and put the country further in debt,” said @44paws on YouTube.
A comment by Gillian Spencer (@gillianspencer6177 on YouTube) reads, “There are very few essentials on the list of tax exemptions. If people are struggling to afford food, this so-called holiday won’t help.”
Food banks across the country seem to have mixed feelings about the tax break. In a video, Catalina Gillies, a CityNews reporter, said, “Food banks are also welcoming this news as the demand continues to climb but at the same time say it doesn’t address the root cause.” Their forecast predicts that in 2025, the monthly amount of citizens relying on food banks will likely stay the same or possibly increase, meaning the pause on GST/HST will not make much of a difference when it comes to food affordability.
While this temporary GST/HST removal will help countless families with spending during the holiday season, it could also be a cover-up for deeper issues.
Sources:
Canada, Department of Finance. “More Money in Your Pocket: A Tax Break for All Canadians.” Canada.Ca, Government of Canada, 21 Nov. 2024, www.canada.ca/en/department- finance/news/2024/11/more-money-in-your-pocket-a-tax-break-for-all-canadians.html.
CityNews. “Two-Month GST Cut Coming to Help Household Budgets during Holiday Season.” YouTube, 21 Nov. 2024, www.youtube.com/watch?v=Ai4WWNpOmNs.
CP24. “Pierre Poilievre Responds to Proposed GST Break.” YouTube, 22 Nov. 2024, www.youtube.com/watch?v=noIgE8MHsLA.
