Minister Valdez and Minister Khera highlight the start of the federal government's tax break

MISSISSAUGA, ON, Dec. 14, 2024 /CNW/ - The past few years have been challenging for people in Mississauga and Brampton. It feels like the price of everything has gone up. And while inflation is back to the 2% target and interest rates have been cut five times this year, we know that Canadians are not yet feeling that in their household budgets.

The federal government cannot set prices at the checkout, but it can put more money in people's pockets to help them afford the things they need and save for the things they want.

The Honourable Rechie Valdez, Minister of Small Business, the Honourable Kamal Khera, Minister of Diversity, Inclusion and Persons with Disabilities, and Peter Fonseca, Member of Parliament for Mississauga East—Cooksville, highlighted the federal government's GST/HST tax break that is starting today.

As announced by Prime Minister Justin Trudeau on November 21 in the news release, More money in your pocket: A tax break for all Canadians and the Working Canadians Rebate, all Canadians, including those in Mississauga and Brampton, can now buy essentials like groceries, snacks, children's clothing and gifts, free of GST/HST.

This new tax break applies to:

• prepared foods, including vegetable trays and pre-made meals, 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% 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 will last until February 15, providing Canadians with real relief at the cash register and meaningful savings.

Families will be spending quality time together over the coming weeks. Some will light Christmas trees for Santa to put gifts underneath. Some will share meals with family and friends. Some might just make hot chocolate, order some takeout and stay in for a movie night. With this tax break, the federal government is making the holidays easier, no matter what they look like, and helping Canadians start the new year with a little more money in their pockets.

Quotes

"Just in time for the holiday season, we are helping Mississaugans keep more of their hard-earned money in their pockets. With inflation back down to 2% and tax relief on groceries and seasonal essentials, everyone in our community will be able to focus more on celebrating with family and friends and starting the new year off with a little extra money in their bank accounts."

– The Honourable Rechie Valdez, Minister of Small Business

"The holiday season often brings significant expenses for many Canadians. With new tax cuts on essentials and holiday expenses, we are helping to reduce costs for families when they need relief the most. Combined with recent cuts on interest rates, this means Canadians can now breathe a little easier as they prepare to share special moments with family and friends."

– The Honourable Kamal Khera, Minister of Diversity, Inclusion and Persons with Disabilities, and Member of Parliament for Brampton West

"Our government believes in supporting Canadians and is taking concrete action to alleviate their financial pressures this holiday season. The tax cut now in place will see GST/HST removed from food, diapers, toys and many other holiday essentials. With this tax break, we are helping all Canadians spend less as they celebrate with family and friends and go into the new year."

– Peter Fonseca, Member of Parliament for Mississauga East—Cooksville

"We are pleased that Parliament has enacted the GST and HST holiday on restaurant meals. This strategic initiative delivers a significant $1.5 billion boost in sales to the restaurant industry, providing essential support during the traditionally challenging winter months. Furthermore, it addresses the affordability challenges faced by Canadians, benefiting not only consumers but also our employees by safeguarding their hours and shifts. This move is a decisive step toward strengthening the sector and enhancing economic stability for all stakeholders."

– Kelly Higginson, CEO of Restaurants Canada

Quick facts

• The GST/HST is fully relieved on the supply or importation of qualifying goods from December 14, 2024, to February 15, 2025. Further details on the qualifying goods are available in the backgrounder: A tax break for all Canadians.
• A family spending $2,000 on qualifying goods, such as children's clothing, shoes and toys, diapers, books, snacks for the house or restaurant meals, is paying $100 less GST over the two-month period.
• In provinces where the HST has also been removed from qualifying goods (Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island), people get further savings. In Ontario, a family spending the same $2,000 on qualifying goods is paying $260 less HST over the two-month period.
• The government is focused on making life more affordable for Canadians, through actions that are already saving families and individuals thousands of dollars a year:
  • The new National School Food Program, with $1 billion over five years, aims to provide meals for up to 400,000 more kids each year, ensuring all children have the food they need to have the best start in life, regardless of their family circumstances. The program is expected to save the average participating family with two children $800 per year in grocery costs, with lower-income families benefiting the most.
  • Families are receiving more money through the Canada child benefit to help with the costs of raising children and make a real difference in the lives of children in Canada. The Canada child benefit, which is providing up to nearly $8,000 per child in 2024–25, is indexed annually to keep up with the cost of living and has helped lift hundreds of thousands of children out of poverty since its launch in 2016.
  • The Canada-wide $10-a-day child care system is saving families up to $14,300 per child, per year. It has already cut fees for regulated child care to an average of $10 a day or less in over half of all provinces and territories and by 50% or more in all others.
  • The Canadian Dental Care Plan is now available to children under 18 whose family income is under $90,000, seniors 65 and older, and adults with a valid federal disability tax credit certificate for 2023.

Related products

• Backgrounder: A tax break for all Canadians

Associated links

• News release – More money in your pocket: A tax break for all Canadians and the Working Canadians Rebate

Stay connected

Follow Canada Business on social media.

X (Twitter): @canadabusiness | Facebook: Canada Business | Instagram: @cdnbusiness

For easy access to government programs for businesses, download the Canada Business app.

SOURCE Innovation, Science and Economic Development Canada

Contacts: Callie Franson, Senior Communications Advisor and Issues Manager, Office of the Minister of Small Business, [email protected], 613-297-5766; Media Relations: Innovation, Science and Economic Development Canada, [email protected]