The Canadian government has announced new measures aimed at easing financial pressures on households during the holiday season and into the new year, including a temporary GST/HST exemption and a rebate for working Canadians.
Starting December 14, 2024, essentials such as groceries, snacks, children’s clothing, restaurant meals, pre-prepared foods, children’s toys, car seats, books, and Christmas trees will be exempt from GST/HST. The exemption will also apply to select alcoholic beverages under seven percent alcohol by volume. This tax relief is scheduled to last until February 15, 2025, and is expected to deliver substantial savings to households.
“Our government can’t set prices, but we can give Canadians, and especially working Canadians, more money back in their pocket,” said Prime Minister Justin Trudeau, in a media release.
“With a tax break for all Canadians and the Working Canadians Rebate, we’re making sure you can buy the things you need and save for the things you want.”
The government also announced a new Working Canadians Rebate to provide direct financial support. Canadians who worked in 2023 and earned up to $150,000 will receive a $250 rebate. Payments will begin in early spring 2025, benefitting an estimated 18.7 million Canadians.
Deputy Prime Minister and Minister of Finance Chrystia Freeland emphasized the importance of these measures during a time of high seasonal expenses.
“The holiday season is when expenses are highest for many Canadians and their families – even with inflation back down to two percent and interest rates being cut four times this year,” she said, in a press release.
“With new tax relief on groceries and seasonal expenses and a rebate for working Canadians, we are reducing costs when they are highest for Canadians. This is about helping you celebrate with family and friends and start 2025 with a little extra money in your bank account.”
The government is urging Parliament to pass the necessary legislation quickly to ensure the measures can be implemented without delay.
Additional initiatives aimed at affordability include the Canada Child Benefit, which provides up to $8,000 per child annually and is indexed to inflation, and the Canada-wide $10-a-day child care system, which is saving families up to $14,300 per child each year. Other programs, such as the Canadian Dental Care Plan and the National School Food Program, are designed to reduce essential costs further and improve quality of life for Canadians.
The new tax measures and rebate are part of the government’s broader efforts to make life more affordable and provide meaningful relief to middle-class families during challenging economic times.
