The past few years have been challenging. It feels like the price of everything has gone up. And while inflation and interest rates are dropping back to the 2 per cent target and interest rates have been cut four times this year, we know that Canadians are not yet feeling that in their household budgets.
Our government cannot set prices at the checkout, but it can give Canadians more money in their pockets-to help them afford the things they need and save for the things they want.
Today in Montréal, the Honourable Soraya Martinez Ferrada, Member of Parliament for Hochelaga, Minister of Tourism and Minister responsible for CED, met with a local restaurant owner and its team to highlight the government's plan to put more money in Canadians' pockets.
As Prime Minister Justin Trudeau announced on November 21, starting December 14, 2024, the Government of Canada is giving a tax break to all Canadians. With a GST/HST exemption across the country, Canadians will be able to buy essentials such as groceries, snacks and children's clothing-all tax free.
This new tax break will apply to:
- Prepared foods, including pre-made meals and salads, vegetable trays, and sandwiches.
- Restaurant meals, whether dine-in, takeout, or delivery.
- Snacks, including chips, candy, and granola bars.
- Beer, wine, and cider.
- 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.
This tax break is projected to last until February 15, 2025. This will deliver meaningful savings for Canadians by making essentially all food GST/HST free, providing real relief at the cash register.
Working Canadians will also get some cash back. We are doing this by providing a new Working Canadians Rebate. That means Canadians who worked in 2023 with net earnings up to $150,000 will see a $250 cheque in their bank account or mailbox, starting in early spring 2025. With the Working Canadians Rebate, the Government of Canada is putting money directly into the pockets of the middle class-those who have worked so hard to beat inflation. This will give 18.7 million Canadians that extra help to buy what they need.
We encourage Parliament and all parties to get this legislation passed quickly and unanimously, so workers and working families get more money in their pockets.
Families will be spending quality time together over the coming weeks. Some will light Christmas trees for Santa to put gifts underneath. Some will share meals with family and friends. Some might just make hot chocolate, order some takeout, and stay in for a movie night. With today's announcement, we are making the holidays easier and helping Canadians start the new year with a little more in their pockets.
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"With this tax relief on groceries and holiday essentials, plus a $250 rebate for working Canadians, we are reducing costs when they are highest for Canadians. This means you can focus more on celebrating with family and friends and start the new year off with a little extra money in your bank account."
- The Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for CED
