GST Holiday in Canada: Dates, Eligible Items, and Saving

As a way of giving relief to Canadians during the festive season, the Government of Canada has unveiled a temporary Goods and Services Tax (GST) holiday. The holiday will take place between December 14, 2024, and February 15, 2025, to help households deal with the holiday season expenses.

The GST holiday will exempt certain essential items from the 5% federal sales tax. Such items include groceries, childcare necessities, and festive products such as Christmas trees and decorations. Dining services, including take-out and delivery, will also be exempt from the GST.

This will give a GST holiday to temporarily provide $1.6 billion in tax relief to Canadians. The program is a part of the government's initiatives to help households deal with the rising cost of living.

Let's take a few examples to illustrate the savings. So if this person is spending, for example, $350 on groceries per month, she or he will save $35 over two months. A family of four will spend $1,358 on groceries in a month and, thus, will save about $135.

In some provinces, where the Harmonized Sales Tax (HST) applies, the savings could be even greater. For example, in Ontario, the removal of HST on qualifying goods means families could see even more substantial relief.

To calculate your savings, you can follow these steps:

Calculate your average spending on eligible items over a typical month.
Multiply this by two to get your two-month spending.
Apply 5% GST on this amount and see the savings you could enjoy.

Example: Suppose you spend $500 a month on grocery items. The two months' spending will be $1,000. Under the GST cut, you will save $50 in the holiday season.

It's not just groceries that get the GST holiday. For instance, if you go out or order takeout and spend $200 per month, then you're going to save an extra $20 for the two months.

While the GST holiday is a very concrete way to cut costs, it is important to note that this is only a stopgap measure. The savings, though helpful, are not meant to be a permanent solution to the issue of rising living costs.

Also read: Uttar Pradesh 2025 School holiday list is here!