The two-month GST break introduced by Prime Minister Justin Trudeau in December 2024 is coming to an end. Canadians have less than a week left to take advantage of tax-free savings on groceries, restaurant meals, alcohol, and essential items before the policy expires on February 15, 2025.
Table of Contents
What Was Included in the GST Tax Break?
The temporary GST holiday, which began on December 14, 2024, was aimed at providing financial relief during the costly holiday season. The initiative covered a wide range of items, including:
- Groceries
- Beer, wine, and other alcoholic beverages
- Restaurant meals (dine-in, takeout, and delivery)
- Essential childcare products (such as diapers and baby formula)
- Christmas trees and other seasonal goods
The federal government estimated that the policy would provide $1.6 billion in tax relief, helping Canadians amid rising living costs and inflation.
How Much is the Next GST/HST Payment in 2025?
$250 GST Relief Payment for Canadians Starts in Feb 2025: Eligibility, Dates & How to Claim
Will Ontario Works Increase in 2025? A Complete Guide
Calgary Liquor Stores and Shoppers Prepare for Holiday GST Relief
Was the GST Cut Enough? Critics Say No
While the GST break was designed to offer some relief, it has faced significant criticism from opposition leaders who argue that it did not go far enough to address affordability issues.
NDP: Short-Term Fix, Not Permanent Relief
NDP Leader Jagmeet Singh criticized the GST holiday, calling it a temporary solution to a much bigger issue.
“As usual, the Liberals are letting people down with their choice to make this a short-term tax holiday on only some items,” Singh stated.
While the NDP voted in favor of the GST cut, Singh emphasized that his party is still pushing for permanent tax relief on daily essentials and monthly bills.
Conservatives: A “Temporary Tax Trick”
Conservative Leader Pierre Poilievre dismissed the GST holiday as a “two-month, temporary tax trick.” He argued that the policy fails to counteract the impact of rising taxes and inflation, stating:
“This will not make up for the permanent quadrupling of the carbon tax on heat, housing, food, and fuel—all to save Justin’s job and Jagmeet’s pension.”
Poilievre has called for more long-term measures, including:
- Axing the carbon tax permanently
- Removing GST from new home purchases
Did the GST Holiday Make a Difference?
Despite the tax cut, a report from Canadian fintech firm Moneris found that consumer spending was down year-over-year during the period of the GST break. This suggests that many Canadians are still struggling with affordability despite temporary tax relief.
Meanwhile, concerns over rising costs continue, with reports of international students living in their cars due to high rent and growing uncertainty around potential U.S. trade tariffs that could further impact prices.
Final Chance to Save Before the GST Holiday Ends
With just days remaining, Canadians can still take advantage of the GST-free period on qualifying purchases before it ends on February 15, 2025.
As discussions around affordability and inflation continue, the question remains: Will the government introduce lasting solutions, or was this just a holiday season band-aid?
Leave a Reply