By Ruby Pratka
Local Journalism Initiative
As the holiday season approaches, the federal government has announced plans to pass a two-month moratorium on goods and services tax (GST) for many common household products.
From Dec. 14 to Feb. 15, GST will no longer apply to prepared foods, including pre-made meals and salads, vegetable trays, and sandwiches; restaurant meals, whether dine-in, takeout, or delivery; snacks, including chips, candy, and granola bars; beer, wine, and cider; children’s clothing, footwear, car seats and diapers; toys including video games and puzzles; books and print newspapers; and Christmas trees. People who worked and earned less than $150,000 in 2023 will also get a $250 lump sum payment, to be sent out in early spring.
“With the Working Canadians Rebate, we are putting money directly into the pockets of the middle class, those who have worked so hard to beat inflation,” Brome-Missisquoi MP and Minister of Canadian Heritage Pascale St-Onge said in a statement. “This [tax moratorium] will deliver meaningful savings for all by making essentially all food GST-free, providing real relief at the cash register. We encourage Parliament and all parties to get this legislation passed quickly and unanimously, so workers and working families get more money in their pockets.”
“The economy is picking up strength in Canada, as well as in Brome-Missisquoi, but grocery prices don’t seem to be keeping pace. With the holiday season just around the corner, expenses are adding stress to what should be a festive time. To help you take a breather, we are offering a new grocery and seasonal shopping tax holiday, as well as a new $250 rebate for workers. We hope this boost will allow people in Brome-Missisquoi and across Canada to fully enjoy the magic of the holidays with their loved ones.”
The rebate, according to federal government calculations, would allow a family to recoup $100 for every $2,000 spent on eligible goods. It is expected to cost the government $1.6 million.
Although Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island will stop charging harmonized sales tax on eligible goods during the moratorium, according to a federal government statement, Quebec does not plan to stop charging its own 9.975 per cent sales tax.
Opposition leaders predictably panned the proposal. Conservative Leader Pierre Poilievre called the tax break a “trick.” Bloc leader Yves-François Blanchet told reporters he didn’t understand the intentions behind the proposal, saying, “When the Liberals need billions of dollars to literally buy votes, they find it.” Blanchet did not say whether his party planned to support the proposal. NDP Leader Jagmeet Singh pledged to remove the GST permanently on basic household goods and monthly bills such as household internet should his party eventually form government. The Canadian Federation of Independent Business, for its part, said it was in favour of tax cuts in principle, but was concerned the brief rebate would create bureaucratic and administrative complications for businesses.