The tax break, running until Feb. 15, 2025, exempts a wide range of everyday essentials from the 5 percent goods and services tax, such as dining out, groceries, holiday items, books, and a variety of childrenâs products.
- beer, wine, and cider, as well as pre-mixed alcoholic beverages below seven percent alcohol by volume;
- prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches;
- restaurant meals, whether dine-in, takeout, or delivery;
- some snacks, including chips, candy, and granola bars;
- childrenâs clothing, footwear, car seats, and diapers;
- childrenâs toys, such as board games, dolls, puzzles, and video game consoles;
- printed books, newspapers, and religious scriptures;
- Christmas trees, whether natural or artificial.
The tax break is automatic for in-store shoppers, with waivers applied directly at checkout by retailers for qualifying purchases.
For remote shoppers, items must be fully paid for and delivered by the end of the eligible period to qualify for the break. Delivery is defined as when an item is handed over to a shipping service or mailed, rather than when it reaches the consumerâs address.
Canadians in provinces with harmonized sales tax (HST), including Ontario, Newfoundland and Labrador, and the Maritimes, will also benefit from the break. The HST, set at 13 percent in Ontario and 15 percent in the other affected regions, will be fully waived during the period.
Legislation
The bill implementing the tax break measure, Bill C-78, âTax Break for All Canadians Act,â was passed by the Senate on Dec. 12 and received royal assent on the same day.
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âCommon sense Conservatives will vote against this irresponsible inflationist tax, temporary two-month tax trick, and instead push our plan to axe the carbon tax and axe the sales tax on new homes for everyone, for good,â Poilievre told reporters in Ottawa on Nov. 28.
Jennifer Cowan, Noé Chartier, and The Canadian Press contributed to this report.
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