On November 21, 2024, the government of Canada announced its intention to introduce legislation in Parliament that would provide for a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for groceries, restaurant meals and holiday essentials. Many of the items relieved of the application of the GST/HST federal component, at 5%, under the current announcement are already subject to point-of-sale rebates for the provincial component of GST/HST in one or more HST participating provinces. However, certain items are subject to a relief for the first time since introduction of the GST/HST.
The temporary relief will be for goods sold from December 14, 2024, to February 15, 2025 (the “relief period”). It is expected that businesses will be ready to remove the GST at checkout as of December 14. Note that the GST relief will also be offered on goods imported in Canada during the relief period.
The proposed relief would apply to the below listed goods that are delivered to the purchaser and paid for during the relief period:
- Children’s clothing and children’s footwear.
- Children’s diapers.
- Children’s car seats.
- Print newspapers and printed books.
- Christmas trees or similar decorative trees, whether natural or artificial.
- Select children’s toys, that are designed for use by children under 14 years of age in learning or play.
- Jigsaw puzzles, for all ages.
- Video-game consoles, controllers or physical game media.
- Food or beverages, this category will more specifically include:
- Alcoholic beverages (excluding spirits);
- Carbonated beverages, candies, chips and similar snacks;
- Cakes, muffins, pies, pastries and similar baked goods with sweetened filling or coating;
- Ice cream, frozen yogurt and non-dairy substitutes;
- Prepared salads, sandwiches, and other arrangements of prepared food;
- Food or beverages sold in a restaurant or similar establishment;
- Food or beverages sold in conjunction with catering services.
The Working Canadians Rebate
All Canadians who worked in 2023 and earned an individual net income of less than $150,000 will receive a $250 rebate. This amount, which is tax-free, will be paid under the following conditions:
- Filing Deadline: The 2023 income tax return must be filed by December 31, 2024, and:
- Have claimed the tax credit for contributions made to the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP) (from employment or self-employment income),
- OR have claimed the tax credit for contributions made to Employment Insurance (EI) or the Quebec Parental Insurance Plan (QPIP),
- OR have declared income from EI or QPIP benefits.
- Residency: Be a resident of Canada as of March 31, 2025.
- Legal Status: Not be serving a prison sentence of at least 90 days immediately before April 1, 2025.
- Alive: Not be deceased as of April 1, 2025.
The rebates will be distributed in early spring 2025 via direct deposit or by cheque.