On the GST/HST Tax Break

Image from the Liberal Party of Canada

As of December 14th, 2024, Prime Minister Justin Trudeau introduced a temporary tax break for all groceries, restaurant meals, drinks, toys, games, children’s clothing and gifts. The duration of this period covers the entire winter holidays, until February 15th, 2025 into the new year. Furthermore, Trudeau has proposed a $250 tax-free rebate for all Canadians who have worked in 2023 and earned a net income upwards of $150,000.

What does this mean for Torontonians, and with this change, how do they plan on spending their winter holidays?

Canadian households will see the changes in their Christmas shopping expenses, a welcome addition to start off the festive season. Restaurants, takeout, and dining businesses in particular will also likely see a huge boom in clientele as all food services will be included in the tax-free period.

Even so, despite all these reasons, public response has been…mild, so to say. For one, it's important to note that many grocery items (i.e. vegetables, raw meat and milk) are already tax-exempt, leaving little to no difference shown on the total amount in your receipt. In addition, there are restrictions that apply to the items in question: for example, only toys and physical game media for ages 12 and under will be tax-free. Both of these facts only enforce the limited application of this tax-free period.

For many Torontonians, this tax-free period will make little difference, and many plan on spending their holiday break like any other. As for business owners, this announcement means that establishments and retailers will have to accommodate for the new changes––and new customer expectations.