Canada's GST Holiday Begins, Offering Temporary Tax Relief

The two-month tax break aims to ease costs for consumers on select goods and services, but businesses report logistical challenges and mixed benefits.

The federal government has implemented a two-month GST and HST tax break on items such as groceries, holiday essentials, toys, books, and restaurant meals, effective December 14, 2024.
The policy is projected to cost $1.6 billion, with estimates reaching up to $2.7 billion if provinces with harmonized sales taxes seek compensation.
Consumers have welcomed the savings, but many businesses report difficulties in implementing the tax changes, citing unclear guidelines and increased administrative costs.
Small business owners and industry groups have expressed concerns over compliance challenges, potential audits, and the policy's limited long-term benefits for businesses.
Critics, including Conservative Leader Pierre Poilievre, have questioned the measure's effectiveness, labeling it a politically motivated move rather than a meaningful economic solution.