The Trudeau government has announced a two-month GST/HST holiday on many essential items, and is promising a $250 rebate to Canadians next spring.

Starting Dec. 14, the federal government will introduce a GST/HST exemption across the country for items like groceries, snacks, and kids clothing. The new tax break will apply to:

• 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.

The tax break is projected to last until Feb. 15, 2025, and will make essentially all food GST/HST free.

There will also be a “Working Canadians Rebate.” Canadians who worked in 2023 and earned up to $150,000 will see a $250 cheque in their bank account or mailbox, starting early spring 2025.

Federal Conservative leader Pierre Poilievre held a press conference responding to the prime minister’s announcement, describing it as a “tax trick.”

“What we have is a two-month, temporary tax trick that will not make up for the permanent quadrupling carbon tax on heat, housing, food, and fuel, and all to save Justin’s job and Jagmeet’s pension,” Poilievre said. “Ironically, in just a few months, Trudeau and the NDP plan to raise taxes on all the same items they claim they’re giving you a break on directly through the carbon tax.”

Poilievre called for an alternative approach to permanently cut the carbon tax and take the GST off new homes.