Canada’s federal government announced a proposed temporary exemption from the goods and services tax/harmonized sales tax (GST/HST) for specific consumer goods on 21 November 2024.
With a GST/HST exemption across the country, Canadians will be able to buy essentials like groceries, snacks, children’s clothing, and gifts—all tax-free. However, the tax exemption hasn’t been legislated or enacted yet, and the government hasn’t released proposals detailing its administration.
This new tax break will apply to:
- Children’s clothing and footwear, car seats, and diapers;
- Children’s toys, such as board games, dolls, and video game consoles;
- Prepared foods, including vegetable trays, pre-made meals and 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 seven percent ABV;
- Books, print newspapers, and puzzles for all ages, and;
- Christmas trees.
This tax relief will go into effect 14 December 2024 to 15 February 2025.
