Canada is waiving GST & HST on a bunch of items — Here's what you need to know

If you've been feeling the pinch at the checkout, there's some good news coming your way as an early holiday gift.

The federal government announced on Thursday that it's offering a major tax break to all Canadians by waiving the goods and services tax (GST) and harmonized sales tax (HST) on a whole bunch of everyday items starting in December. According to the feds, this move would provide an estimated $1.6 billion in tax relief and is aimed at giving Canadians more money in their pockets at a time when they need it most.

This new tax break is arriving on December 14, just in time for the holiday season, and applies to a variety of essentials, from groceries and snacks to kids' clothing and even Christmas trees. Yes, you read that right — buying that perfect tree for your living room just got a little cheaper.

"Our government can't set prices," said Prime Minister Justin Trudeau in a press release, "but we can give Canadians, and especially working Canadians, more money back in their pocket."

The exemption will last for two months, until February 15, 2025, giving families a chance to save on purchases during the busiest shopping months of the year.

According to the feds, a family spending $2,000 on these items over the two-month period would see GST savings of over $100. Meanwhile, residents of provinces with HST would save even more.

So, what exactly is tax-free now? Here's the full list of items the exemption applies to from the government press release:

• Prepared foods, including vegetable trays, premade meals and salads, and sandwiches
• Restaurant meals, whether dine-in, takeout or delivery
• Snacks, including chips, candy and granola bars
• Beer, wine, cider and premixed 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

And there's more: Working Canadians who earned up to $150,000 in 2023 are in for a bonus this spring, when the government will roll out a $250 Working Canadians Rebate. According to the feds, this rebate is designed to help middle-class Canadians, giving nearly 19 million people an extra boost in their bank accounts.

"The holiday season is when expenses are highest for many Canadians and their families," said Deputy Prime Minister and Finance Minister Chrystia Freeland. "With new tax relief on groceries and seasonal expenses and a rebate for working Canadians, we are reducing costs when they are highest for Canadians."

So whether you're hosting a holiday feast, buying gifts for the kids or just grabbing some snacks for a cozy movie night, this GST/HST exemption is a little something to make life more affordable.

For more details about eligible items and how to make the most of this tax break, check out the official government announcement here.

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