Two-Month GST/HST Waiver
Today, the new policy was announced. The Canadian government proposes a GST/HST exemption for specific categories (such as food, restaurants, beverages, snacks, children’s clothing, and gifts) from December 14, 2024, to February 15, 2025. This means that once the new policy is implemented, there will be no GST/HST on these specific categories for two months—businesses won’t need to charge it, and consumers won’t have to pay it.
Because December through February includes holidays such as Christmas and the New Year. People tend to visit family and friends, purchase holiday gifts, buy new clothes, and dine out, leading to concentrated spending during this period. According to estimates:
If a family spends $2,000 on food, children’s clothing, toys, snacks, and dining out during these two months, they could save $100 on GST under the new policy. In provinces where HST is applied (like Ontario), the same $2,000 expenditure could save $260 on HST under the new policy.
Goods Eligible for GST/HST Tax Reduction:
- Children’s Products: Includes clothing (babywear, girls’ clothing size 16 and under, boys’ clothing size 20 and under), shoes (insole length ≤ 24.25 cm), diapers, and child car seats.
- Printed Materials: Printed newspapers, books (excluding advertising magazines, calendars, coloring books, etc.), religious texts, and audiobooks intended for reading aloud.
- Christmas Trees: Natural or artificial decorative trees.
- Food and Beverages: Excludes alcoholic beverages, carbonated drinks, candy, snacks, frozen desserts, processed foods, restaurant meals, and bottled water.
- Children’s Toys: Includes board games, pretend play toys, dolls, building blocks, and other toys suitable for children under 14 years old.
- Puzzles: Suitable for all ages.
- Video Game Equipment: Includes gaming consoles, controllers, and physical game cartridges or discs.
$250 GST rebate for Working Canadians
Who is eligible:
In 2023, employed individuals with a net income (Net income) below CAD 150,000
Submit your 2023 tax return and claim the relevant deductions by the end of 2024.
A Canadian resident by March 31, 2025
Not incarcerated for more than 90 days within the 90 days prior to April 1, 2025
Notes:
Expected to be issued in the spring of ’25
If you are already set up for CRA direct deposit, the CRA will deposit the money directly into your bank account.
If you haven’t registered for a CRA direct deposit, you will receive a mailed check.
