Today, Bill C-78, the Tax Break for All Canadians Act received Royal Assent, making essentially all food and many holiday essentials tax-free for two months.
Specifically, this legislation removes the GST/HST on holiday essentials, like groceries, restaurant meals, drinks, snacks, children's clothing, and gifts, from December 14, 2024, until February 15, 2025.
During this period, the Tax Break for All Canadians Act will provide real relief at the cash register by making the following items tax-free:
- 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, and cider;
- 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; and,
- Christmas trees and similar decorative trees.
By effectively making purchases of these holiday essentials tax-free, the measure will put between $100 and $300 more in workers' pockets on a basket of $2,000 in purchases over the next two months.
This pragmatic tax relief will make life easier for Canadians during the holiday season-when they tend to face higher than usual costs-and help workers start the new year with more money in their pockets.
