Your money-saver this holiday season: GST/HST Reprieve

By Muqaddas Ashfaq

Canada’s federal government is set to roll out a tax relief plan aimed at providing financial support to Canadians, with Prime Minister Justin Trudeau announcing the introduction of the “Working Canadians Rebate.” The $250 cheques, expected to be sent out in early spring 2025, are designed to provide significant relief to Canadians feeling the strain of rising living costs.

The Prime Minister has also announced a temporary GST and HST break on a range of items, effective December 14. Essentials like diapers, children’s clothing, and prepared meals, will be tax-free, along with stocking suffers like toys, books, and sweet treats. This two-month measure is aimed at easing the financial strains for families. ( ed. note: In Ontario and Nova Scotia, shoppers already receive a point of sale rebate on provincial sales tax on diapers and children's clothing.)

However, before these initiatives can take effect, the bill introducing the tax relief plan must pass through Parliament. But Parliament has been paralyzed for two months over the government's refusal to hand over documents related to its Sustainable Technology fund.

Trudeau emphasized the rebate is needed. “Canadians are going to get a real break,” he said, noting that the cheques aim to alleviate some of the financial pressures many individuals and families are facing, and could save households up to $100.

Trudeau insisted the rebate is part of a broader government initiative to help working Canadians navigate economic challenges without worsening inflation. “It’s not going to stimulate inflation,” he asserted, attempting to quell any fears that the relief package could have negative economic consequences.

However, the announcement has already sparked political debate. Conservative Leader Pierre Poilievre criticized the move, describing it as a “two-month temporary tax trick” that wouldn’t address the longer-term financial burdens Canadians are facing. “With Jagmeet and Trudeau, it’s double trouble for Canadians,” Poilievre said, taking aim at both the federal government and the NDP for their economic policies. He further argued the rebate would not offset the effects of the rising carbon tax, which he said has quadrupled the costs of essentials like heating, housing, and fuel. “What we have is a two-month temporary tax trick that will not make up for the permanent quadrupling carbon tax on heat, housing and fuel,” Poilievre added.

While the tax rebate is a short-term relief effort, the government insists that the measure will help working Canadians get by until broader long-term solutions are implemented. Critics, however, remain skeptical about its ability to meaningfully address the financial strain that many families continue to face. The rebate cheques are expected to be delivered in the spring of 2025, but whether they will provide the relief Canadians need remains to be seen.

By Miriam Bosiljevac

New proposed legislation will mean that Canadians won’t have to pay GST or HST on some items this holiday season, starting December 14, 2024. 

If it passes, the two-month reprieve on GST/HST will include groceries and holiday essentials. The relief will apply to items that are delivered and paid for during this two-month period. 

The list includes items for: 

Babies and Children 

• Children’s clothing, footwear and diapers
• Car seats
• Children’s toys and board games designed for 14 and younger
• Jigsaw puzzles for all ages
• Video game consoles, controllers and games

Books and trees 

• Printed newspapers 
• Printed books 
• Christmas trees (artificial and real)

Food and beverages 

• Wine, beer and cider 
• Coolers up to 7% 
• Carbonated drinks and fruit juices 
• Candy, chocolate, gum, nuts and popcorn 
• Chips, pretzels and puffs 
• Granola, snack mixes and dried fruit
• Ice-cream, frozen yogurt, pudding and mousse (dairy and non-dairy) 
• Cakes, muffins, pastries, doughnuts and croissants 
• Prepared salads, sandwiches, platters of fruit and cheese 
• Bottled water

by Sam Rogers

The GST freeze program planned for December 14th begs the question: how will this sudden change impact small business owners during the important holiday season? In their statement, the Canadian Federation of Independent Business, or CFIB, are concerned about the unnecessary complexities for businesses who now have to change their point of sale systems twice in a 60 day period. Furthermore, the tax break might help bring people out shopping but some small businesses, like distilleries, are exempt from the tax break; potentially hindering rather than helping them.

When reached for comment, a CFIB representative also expressed concern about whether the GST freeze legislation will even be passed. Currently, Parliament is in gridlock due to a Conservative led filibuster that started in September. This situation will put small business owners in a state of limbo wondering if they should prepare for a GST freeze that may never be put into law.

There are also concerns about what exactly is covered in the GST freeze. The list of products covered by the GST freeze include items like Christmas trees; however, there is no mention of regalia for other holidays such as Hannukah and Kwanzaa. This will inevitably leave some businesses confused by what is covered by the proposed program.

The GST freeze program might put some in the holiday spirit, but for some business owners these blind spots could make the Trudeau government seem like Ebeneezer Scrooge.

By Miriam Bosiljevac 

The Loblaws-owned pharmacy chain will no longer sell electronics, consoles, cameras or televisions. 

After a disappointing third quarter, Loblaws CFO Richard Dufresne made the announcement during a call on November 13. He told analysts that computers, televisions and cameras were very low-margin sales and that people who buy them rarely make other purchases in store. Because of that Shoppers Drug Mart will no longer sell any electronics.

"Pharmacy retail sales growth outpaced food retail sales growth in the quarter," the company said in a statement. "Pharmacy front-of-store sales reflected continued strength in the beauty category but were pressured by the company's decision to de-shelve certain low-margin electronics categories and lower consumer spending on consumer staples." 

Customers will still find some products in-store, but many products online are already listed as out-of-stock.