TORONTO, Nov. 24,
2024 /CNW/ - The past few years have been
challenging. It feels like the price of everything has gone up. And
while inflation is back to the 2 per cent target and interest rates
have been cut four times this year, we know that Canadians aren't
yet feeling that in their household budgets.
Our government can't set prices at the checkout, but we can give
Canadians more money in their pockets – to help them afford the
things they need and save for the things they want.
Today in Toronto the Minister
of Justice and Attorney General of
Canada, the Honourable Arif
Virani, and the Honourable Marci Ien, Minister for Women and
Gender Equality and Youth met with Sweet Thrills to share the
government's work to put more money in your pocket.
As Prime Minister Justin Trudeau
announced on November 21, starting
December 14, we're giving a tax break
to all Canadians. 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.
This new tax break will apply to:
- 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 7
per cent 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.
This tax break is projected to last until February 15th. This will deliver
meaningful savings for Canadians by making essentially all food
GST/HST free, providing real relief at the cash register.
Working Canadians will also get some cash back. We're doing this
by providing a new Working Canadians Rebate. That means,
Canadians who worked in 2023 with net earnings up to $150,000, will see a $250 cheque in their bank account or mailbox,
starting early spring. With the Working Canadians Rebate, we are
putting money directly into the pockets of the middle-class – those
who have worked so hard to beat inflation. This will give 18.7
million Canadians that extra help to buy what they need.
We encourage Parliament and all parties to get this legislation
passed quickly and unanimously, so workers and working families get
more money in their pockets.
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 take out, and stay in for
a movie night. With these announcements, we're making the holidays
easier and helping Canadians start the new year with a little more
in their pockets.
Quote
"This time of year, Canadians are making tough decisions on
spending. Our government wants to help make those decisions less
challenging. It is why we are taking measures to put a little bit
of money back in your pocket. The GST holiday is a tax break for
all Canadians. It will provide you with more money to buy the
things you need and save for the things you want."
– The Honourable Arif Virani, P.C., K.C., M.P.
Minister of Justice and Attorney
General of Canada
"The past few years have been tough, and we know many
Canadians are still feeling the squeeze in their household budgets.
That's why this rebate is here—to give a little extra back to those
who work hard every day. With this rebate, millions of working
Canadians will see a $250 cheque in
their mailbox or bank account. It's about giving people a bit more
breathing room to cover what they need and enjoy the moments that
matter most with their families."
– The Honourable Marci Ien, P.C, M.P.
Minister for Women and Gender Equality and Youth
Quick Facts
- The GST/HST would be fully relieved on the supply or
importation of qualifying goods for a period beginning on
December 14, 2024, and ending on
February 15, 2025. Further details on
the qualifying goods are available here.
- 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 would pay
$100 less GST over the two-month
period.
- In provinces where the HST will also be removed from qualifying
goods (Ontario, Newfoundland and Labrador, Nova
Scotia, New Brunswick, and
Prince Edward Island), further
savings would be realized. In Ontario, the same $2,000 basket of qualifying purchases realize HST
savings of $260 over the two-month
period.
- Canadians who have claimed tax credits for Canada Pension
Plan/Quebec Pension Plan contributions or for Employment Insurance
(EI) or Quebec Parental Insurance Plan (QPIP) premiums, and those
who reported income from EI or QPIP benefits, with individual net
income below $150,000 in 2023, would
be eligible for the Working Canadians Rebate. Eligible Canadians
would begin receiving the payments starting in spring 2025. More
information on the rebate is available here.
- The government is focused on making life more affordable for
Canadians, with actions that are already saving families and
individuals thousands of dollars a year, including:
- A new National School Food Program, with $1 billion
over five years 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 benefitting the most.
- 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.
- Saving families up to $14,300 per
child, per year, with the Canada-wide $10-a-day child care system, which 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 per cent or more in all others.
- Saving families about $730 per
year with the Canadian Dental Care Plan, which is already
available for children under 18, with family incomes under
$90,000, because no one should have
to choose between taking care of their kids' teeth and putting food
on the table.
Related products
- Backgrounder: A tax break for all Canadians
- Backgrounder: the Working Canadians Rebate
Associated links
- News Release: More money in your pocket—A tax break for all
Canadians and the Working Canadians Rebate
SOURCE Department of Justice
Canada
