As the two-month GST holiday kicks off, Canadians are eagerly taking advantage of the tax break. Announced by Prime Minister Justin Trudeau in November, this initiative aims to reduce the financial burden during the holiday season, making essential purchases tax-free from December 14 to February 15.
What’s Included in the GST Cut?
The GST holiday covers a wide range of products to help Canadians save money during the busy gift-giving season. Prime Minister Trudeau highlighted some of the key items:
- Groceries
- Beer and wine
- Restaurant meals (dine-in, takeout, or delivery)
- Essential childcare items
- Christmas trees
The full list of eligible products can be found online, but these key items are helping Canadians stretch their budgets through the festive season.
How Canadians Are Using the GST Break to Save
Across social media platforms like Reddit, Canadians are sharing their clever shopping strategies to maximize the benefits of this temporary tax relief. Here are a few popular ideas:
- Stocking Up on Essentials: One Reddit user mentioned buying multiple cases of beer at the LCBO, while another stocked up on two years’ worth of diapers for their children.
- Savvy Snack Purchases: For families, some shoppers suggested buying non-perishable items like granola bars, chips, and soda — especially if they are on sale. This helps stretch the budget while taking full advantage of the tax-free offer.
- Treating Yourself: Other Canadians are using the tax break to indulge in childhood favorites, such as Pokémon cards and Lego sets.
- Wine Cellar Stocking: A few savvy shoppers are even taking advantage of the GST break to purchase wine and store it for the future. Although wine is not considered an essential, it still falls under the GST cut.
The Impact on Your Grocery Bill
The two-month GST holiday may not lead to huge savings for everyone, but it can add up. For instance, if you’re a single person between the ages of 31 and 50, you likely spend between $310 and $350 per month on groceries. With the GST break, you could save around $31 to $35 during the two-month period.
While some Canadians question whether the savings are substantial enough, the GST break provides an opportunity to reduce costs on everyday purchases.
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The Best Way to Save: Spend Less
One final reminder from the Reddit community: the most effective way to save money is not to spend it at all. Whether you’re using the GST break to stock up on essentials or indulging in a treat, always be mindful of your overall spending to ensure you’re truly saving.
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