Prime Minister Justin Trudeau is offering Canadians temporary tax breaks on essential items, children’s clothing and diapers, restaurants and prepared foods. Trudeau announced Thursday that a one-time $250 rebate will also be available.
The two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) will apply nationwide. The federal government says it is aimed at addressing lingering concerns about affordability.
“Canadians are going through a lot. They work hard. We’re seeing that. We’ve been able to get through the last few years successfully,” Trudeau said. “Everyone has had to tighten their spending a little bit. Now we’re giving all Canadians a tax break.”
The products the government is offering relief on from Dec. 14 to Feb. 15 include prepared salads, sandwiches and similar pre-made platters; Coke, pies, donuts, brownies and other pastry items; dine-in, take-out or delivery restaurant food; beer, wine, cider, coolers and certain non-alcoholic beverages; candy, chocolate, gum and related sweets; ice cream, other frozen treats and puddings; fruit bars and granola bars; doll houses, toy cars, Lego; children’s clothing, shoes, car seats and diapers; video games, consoles and controllers; jigsaw puzzles and board and card games for all ages; printed magazines and selected books and artificial or natural Christmas trees.
Deputy Prime Minister and Finance Minister Chrystia Freeland said that some foods are not subject to the GST at this time. But prepared foods are. For example, rotisserie chicken.
In her announcement on Thursday, Freeland said that if you have a very busy day and need to feed your children at the end of the day, you might consider going to the grocery store and choosing prepared foods. But that can be quite expensive.
At the same time, the prime minister also announced a new Working Canadians Rebate.
The question is, who will benefit from it? Businesses are expected to waive the GST and HST on certain products from December 14 to February 15. The HST will only apply in certain provinces. The provinces include Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island.
According to the federal government, this tax break will cost the government $1.6 billion and a family spending $2,000 on certain products will save them $100 over two months. The savings will be even greater in provinces that have HST.
