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December 20, 2024
Canadians are getting a GST holiday as an early Christmas present from the Trudeau government, which introduced legislation to provide a two-month GST break from December 14, 2024 to February 15, 2025. GST will not be charged on “holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts” according to this Department of Finance backgrounder regarding the GST holiday. The proposed legislation is called the “Tax Break for All Canadians Act”.
Many alcoholic beverages will get a GST break, including wine, beer, ciders and spirt coolers up to 7% ABV. Spirits will not be exempt from GST.
See a list of items exempt from GST/HST from CTV News.
Mixed Reaction to GST Holiday
Conservative Leader Pierre Poilievre had a negative reaction to the proposed legislation, saying that it isn’t a tax cut but an “irresponsible, inflationist … temporary two-month tax trick.” As reported in this CTV News article, the Conservative Leader told reporters that “Now is the worst possible time to be blowing $6 billion trying to save Justin Trudeau’s political skin”. Poilevre and his MPs voted against the act as did Bloc Quebecois Leader Yves-Francois Blanchet and his caucus.
While many Canadian consumers and small businesses welcome the break, others see it as ploy by an embattled Prime Minister to buy votes. The tax break will undoubtedly be a welcome, though temporary revenue boost for many Thrive Liquor & Cannabis Advisors clients in BC’s liquor industry. Meanwhile, Economists are sounding the alarm, concerned that the GST holiday could trigger inflation. We cross our fingers that these dire predictions don’t become a reality.
