In an effort to ease the financial burden on Canadians during the costly gift-giving season, Prime Minister Justin Trudeau announced a GST holiday on essential items. The two-month tax break, which began on December 14 and runs through February 15, has prompted Canadians to share their strategies for saving money. From stocking up on groceries to indulging in nostalgic purchases, here’s how people are making the most of this limited-time opportunity.
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What Is Canada’s GST Holiday?
In November, Prime Minister Trudeau revealed the temporary GST cut, emphasizing its impact on essential items.
“In just a few days, essential items will be tax-free in Canada,” Trudeau stated. “Takeout for dinner. Your morning coffee. Diapers and winter snow pants for your kids. All tax-free for the next two months.”
Key items eligible for the GST holiday include:
- Groceries (excluding prepared foods)
- Alcoholic beverages like beer and wine
- Restaurant meals (dine-in, takeout, or delivery)
- Essential childcare items like diapers
- Seasonal items, including Christmas trees
For a full list of eligible items, visit the official announcement page.
How Canadians Are Saving During the GST Holiday
Canadians have been sharing their best money-saving tips and purchases on social media, particularly Reddit. Here are some highlights:
1. Stocking Up on Essentials
Many Canadians are taking advantage of the tax break to stockpile items they know they’ll use.
- One Redditor shared they purchased two years’ worth of diapers for their child.
- Another stocked up on shelf-stable snacks like granola bars, chips, and pop, suggesting that shoppers wait for sales to maximize savings.
2. Purchasing in Bulk
Some Canadians are using the tax holiday to buy items in bulk. For example:
- A shopper mentioned buying several cases of beer at the LCBO, noting that it was a significant saving over time.
- Others are eyeing opportunities to buy bulk wine for future use.
3. Indulging in Fun Purchases
Not everyone is limiting their purchases to essentials. Some are using the GST holiday as a chance to treat themselves:
- Popular non-essential items include Pokémon cards and Lego sets—nostalgic purchases for many adults.
- One person even purchased a game console, highlighting the savings on larger, more expensive items.
Does the GST Holiday Really Help Save Money?
While some Canadians are thrilled about the savings, others question whether the GST cut truly makes a difference for essential shopping. Here’s a closer look at potential savings:
- A single person between the ages of 31 and 50 spends approximately $310 to $350 a month on groceries.
- With the GST cut (5% savings), they would save between $31 and $35 over the course of a month.
While the savings may not seem life-changing, they can add up—especially for larger households or those who stock up on non-perishable goods.
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Is the GST Holiday Good Policy?
The GST holiday has sparked debate among Canadians:
- Some believe it provides meaningful relief during the costly holiday season.
- Others, however, criticize it as a “bad tax policy,” arguing it’s not a long-term solution to affordability challenges.
How to Maximize Your GST Holiday Savings
If you want to take full advantage of the tax break, here are a few tips:
- Plan Ahead: Create a list of essential items and stock up on bulk purchases where possible.
- Wait for Sales: Combine the GST holiday with store promotions to maximize discounts.
- Focus on Necessities: Prioritize items you know you’ll need, like diapers, groceries, and household essentials.
- Limit Impulse Buys: While it’s tempting to splurge, remember that the best way to save money is not to spend it unnecessarily.
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