Canada's GST Holiday Begins Tomorrow, Offering Seasonal Tax Relief

The two-month tax break removes GST/HST on select holiday essentials, but small businesses face logistical challenges implementing the changes.

The GST/HST holiday will run from December 14, 2024, to February 15, 2025, removing taxes on items like prepared foods, children's clothing, toys, books, and Christmas trees.
Small businesses are struggling to update point-of-sale systems and interpret the complex eligibility criteria for tax-exempt items in time for the policy's launch.
The federal government estimates the tax break will save families between $100 and $300 on $2,000 worth of qualifying purchases, with additional savings in provinces with harmonized sales taxes.
Critics, including small business advocates and economists, warn of potential confusion, compliance errors, and inflationary pressures due to increased consumer spending.
The policy, which will cost the federal government $1.46 billion, aims to provide financial relief during the holiday season but has been criticized for its rushed implementation and design flaws.