The government can’t set prices at the checkout, but we can give Canadians more money in their pockets. To help them buy the things they need and save for the things they want, the government announced that it will be introducing legislation in Parliament that would provide for a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for groceries and holiday essentials.

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, from December 14, 2024, to February 15, 2025. 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.

More Money in Canadians’ Pockets

Removing the GST from these qualifying goods for two months will provide an estimated $1.6 billion in federal tax relief.

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.

In provinces where the HST will also be removed from qualifying goods (Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island), further savings would be realized. In Ontario, the same $2,000 basket of qualifying purchases realize HST savings of $260 over the two-month period.