PRIME Minister Justin Trudeau announced on Thursday that starting December 14, his government is giving a tax break to all Canadians. With a GST/HST exemption across the country, Canadians will be able to buy essentials like groceries, snacks, and kids clothing – all tax-free.

This new tax break will apply to:

• 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.

This tax break is projected to last until February 15, 2025. By making essentially all food GST/HST free, this will deliver meaningful savings for Canadians, with real relief at the cash register, Trudeau said.

Working Canadians will also get some cash back, with a new Working Canadians Rebate. That means Canadians who worked in 2023 and earned up to $150,000 will see a $250 cheque in their bank account or mailbox, starting early spring 2025. “With the Working Canadians Rebate, we are putting money directly into the pockets of the middle-class – those who have worked hard to beat inflation. This will give 18.7 million Canadians that extra help to buy what they need,” Trudeau said.

“We encourage Parliament and all parties to get this legislation passed quickly and unanimously so workers and working families get more money in their pocket,” he added.

Trudeau said: “Our government can’t set prices, but we can give Canadians, and especially working Canadians, more money back in their pocket. With a tax break for all Canadians and the Working Canadians Rebate, we’re making sure you can buy the things you need and save for the things you want.”

Chrystia Freeland, Deputy Prime Minister and Minister of Finance, said: “The holiday season is when expenses are highest for many Canadians and their families – even with inflation back down to 2 per cent and interest rates being cut four times this year. With new tax relief on groceries and seasonal expenses and a rebate for working Canadians, we are reducing costs when they are highest for Canadians. This is about helping you celebrate with family and friends and start 2025 with a little extra money in your bank account.”

• The GST/HST would be fully relieved on the supply or importation of qualifying goods for a period beginning on December 14 and ending on February 15. Further implementation details, including all qualifying goods, are available here.
• Canadians who have claimed tax credits for Canada Pension Plan/Quebec Pension Plan contributions or for Employment Insurance (EI) or Quebec Parental Insurance Plan (QPIP) premiums, and those who reported income from EI or QPIP benefits, with individual net income below $150,000 in 2023, would be eligible for the Working Canadians Rebate. Eligible Canadians would begin receiving the payments starting in spring 2025. More information on the rebate is available here.

Conservative Leader Pierre Poilievre called Trudeau’s announcement “a two-month temporary tax trick.”

A day earlier, federal NDP Leader Jagmeet Singh had claimed credit for the tax break, saying: “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.”

He added: “The NDP committed to removing the GST from daily essentials and monthly bills.”