Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, alongside the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, and the Honourable Rechie Valdez, Minister of Small Business, announced progress delivering new action to put more money in the pockets of Canadians and small businesses.
First, the Deputy Prime Minister and Minister of Finance laid out the details of the draft legislation to deliver the federal government's tax break for all Canadians. Starting December 14, the GST/HST will be removed on groceries and other holiday essentials. This new tax break will make essentially all groceries, including restaurant meals and prepared foods, tax-free through February 15, 2025. Specifically, the GST/HST will not 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; and,
- Christmas trees.
Second, the Deputy Prime Minister and Minister of Finance laid out the details of the draft legislation to deliver the new $250 Working Canadians Rebate. In early spring 2025, Canadians who worked in 2023 and earned up to $150,000 will receive a $250 payment-either through a direct deposit in their bank account or cheque in their mailbox. The federal government is putting money directly into the pockets of the middle class, of those who have worked so hard to beat inflation. The Working Canadians Rebate will give 18.7 million Canadians, including an estimated 965,000 working seniors, the extra support to buy what they need.
Third, the Minister of Small Business announced that eligible small- and medium-business owners will receive tax-free Canada Carbon Rebate for Small Businesses payments early. Starting today, November 25, direct deposits from the Canada Revenue Agency (CRA) will begin appearing in small businesses' bank accounts. For businesses not signed up for direct deposit, the CRA has cut your cheques and put them in the mail early, for delivery when possible. The Canada Carbon Rebate for Small Businesses is delivering over $2.5 billion in tax-free payments to about 600,000 Canadian businesses by returning fuel charge proceeds from 2019-20 through 2023-24. Small businesses that have filed their tax return and are in jurisdictions where the federal fuel charge applies will automatically receive direct deposits from the CRA.
Putting more money in the pockets of Canadians and small businesses is a key part of the federal government's economic plan. This holiday season, a little bit more money in Canadians' pockets will help them afford the things they need and save for the things they want.
