Canadian Government Proposes Pause To GST/HST This Holiday For 2 Months

Vancouverites, it looks like your next meal out just got a little bit cheaper—at least for a while.

The federal government has just proposed today November 21st a temporary GST holiday, meaning no Goods and Services Tax on restaurant meals, snacks, and a wide range of food items, from mid-December to mid-February.

Prime Minister Justin Trudeau introduced this tax break as part of a larger effort to help ease the cost of living pressures for Canadians this holiday season.

The GST holiday will kick off on December 14 and will last for two months (until Feb 15, 2025), covering food and beverage items that are typically subject to the GST—including alcoholic drinks like wine, beer, and ciders (though not spirits), as well as prepared foods and restaurant meals.

However the legislation still needs to be passed so this isn’t finalized just yet.

Although many will poke at this being short of fixing the actual problem the nation is facing, it is better than nothing right?

According to the federal government, removing the GST from these qualifying goods for two months will provide an estimated $1.6 billion in federal tax relief.

For those wondering what exactly falls under this GST holiday, here’s the list of items included:

  • Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.
  • Restaurant meals, whether dine-in, takeout, or delivery.
  • Snacks, including chips, candy, and granola bars.
  • Beer, wine, cider, and pre-mixed alcoholic beverages below 7 per cent ABV.
  • Children’s clothing and footwear, car seats, and diapers.
  • Children’s toys, such as board games, dolls, and video game consoles.
  • Books, print newspapers, and puzzles for all ages.
  • Christmas trees.

If you noticed, the GST holiday is also applies to many non-food items like children’s toys, books, and even Christmas trees, but the real highlight for us—as foodies—is the relief on our restaurant bills and takeout orders.

With inflation and the cost of dining out reaching all-time highs, this temporary break could provide just the nudge some need to support their local restaurants and cafes.

“Our government can’t set prices, but we can give Canadians, and especially working Canadians, more money back in their pocket. 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 Rt. Hon. Justin Trudeau, Prime Minister of Canada

With the holidays approaching, it might be a perfect time to treat yourself to that extra appetizer or dessert—and support your favourite local spots in the process.

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