Canada Approves Two-Month GST Holiday on Holiday Essentials

The federal tax break, starting December 14, aims to ease costs for consumers but faces criticism over implementation challenges and limited scope.

The Liberal government, with NDP support, passed a two-month GST holiday on items like toys, prepared foods, and alcohol, beginning December 14, 2024.
Ontario will match the federal tax break by removing its provincial sales tax, providing an additional $1 billion in relief for residents.
Small business owners have raised concerns over the logistical and financial burdens of temporarily adjusting their systems to comply with the tax holiday.
The measure, costing $1.6 billion federally, has drawn criticism for benefiting higher-income earners and failing to address systemic affordability issues.
The Conservatives and Bloc Québécois oppose the plan, describing it as a short-term gimmick, while the NDP demands expanded eligibility for related $250 rebate cheques.