Canada is committed to making life more affordable, especially during challenging times. To support residents, the government is introducing a temporary tax break that will take effect from December 14, 2024 to February 15, 2025. This initiative will remove the GST/HST on groceries and holiday essentials, offering significant financial relief when it’s most needed. With this move, Canada continues to prioritize the well-being of its residents, ensuring that the rising costs of living, especially during the holiday season, are a little easier to manage. The tax break aims to ease financial pressure and allow more people to enjoy the season without added stress.
How will this affect international students
International students in Canada will benefit from the tax break, with the following goods/services becoming GST/HST tax-free:
Food & Beverages:
- Alcoholic (19+) and carbonated beverages, fruit juices, candies, chips, granola bars, dried fruits and dairy products
- Cakes, muffins, pies, cookies and pastries
- Prepared food like salads, sandwiches, cheese platters, and hot or heated food
- Bottled and dispensed water
These tax exemptions apply when purchasing essentials and groceries for your home. To see more qualifying goods that will be tax-free, please check the government website.
Pay less save more
According to the Government of Canada, it is expected that a family who spends $2000 on the qualifying goods would save $100 on GST over the 2 month period. The tax break is to decrease financial pressure of residents over the holidays and increase the spending power on the overall economy.
In Ontario, the $2,000 spending of qualifying purchases save $260 on HST. Nova Scotia, New Brunswick, Newfoundland and Labrador will also be removing HST on the qualifying goods.
Please note that the proposed tax break is subject to approval by parliament and may not be finalized.
Resources: Government of Canada
