The Blubber

Prime Minister Justin Trudeau unveiled a series of measures on Thursday aimed at easing affordability challenges in the post-COVID era, including a temporary two-month GST holiday on select goods and services.

The Liberal government also plans to issue $250 payments to 18.7 million Canadians who worked in 2023 and earned $150,000 or less. These payments, dubbed the "Working Canadians Rebate," are expected to be distributed in "early spring 2025," according to Trudeau.

The GST/HST holiday will run from December 14, 2024, to February 15, 2025, allowing Canadians to purchase certain items tax-free, including:

• Prepared foods such as veggie trays, pre-made meals, salads, and sandwiches.
• Restaurant meals, including dine-in, takeout, and delivery.
• Snacks like chips, candy, and granola bars.
• Alcoholic beverages under 7% ABV, including beer, wine, cider, and pre-mixed drinks.
• Children’s clothing, 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.

These exemptions make nearly all food in Canada tax-free for the duration of the holiday.

"For two months, Canadians will see real savings on everyday purchases," Trudeau said during an event in Newmarket, Ontario. "While we can’t control prices at the checkout, we can put more money back into people’s pockets. Canadians are feeling the squeeze, and we’re here to help."

Government estimates suggest that families spending $2,000 on eligible items during this period could save about $100. In provinces with the Harmonized Sales Tax (HST), which combines GST with provincial sales tax, the savings will be even greater. Provinces with the HST include Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island.