by Timothy Edward, Local Journalism Initiative reporter
As part of the federal government’s multi-billion-dollar affordability package announced today, GST will be suspended on certain essentials and retail items for Canadians from Dec. 14 to Feb. 15.
Among the items in this “GST holiday” are restaurant meals (dine-in, takeout or delivery), prepared foods at grocery stores, snack foods, beer, wine, cider and pre-mixed alcoholic beverages below 7% ABV, diapers, kids’ clothes and shoes, kids’ car seats and toys, books, newspapers, puzzles and real and artificial Christmas trees.
The Quebec Restaurant Association and Quebec’s Tourism Minister Soraya Martinez have voiced their approval of the GST suspension, forecasting an increase in spending at restaurants over the holidays. Some merchants, including Ted Dranias, who owns the restaurant Petros in Westmount, have concerns about the logistics of removing GST at checkout and eventually putting it back on invoices, estimating it will cost his business $1,000.
The GST holiday is a joint effort by the Liberal government and the NDP, announced by Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland on Thursday.
“The holiday season is when expenses are highest for many Canadians and their families — even with inflation back down to 2% and interest rates being cut four times this year,” Freeland said. “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.”
While the Liberals opted to implement the GST holiday for two months, the NDP would have made it permanent, according to party leader Jagmeet Singh.
The affordability package also includes $250 Working Canadians Rebate cheques, which will be sent out in April 2025 to working Canadians who earned less than $150,000 in 2023.