The government is proposing that the GST/HST be fully and temporarily relieved on holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts, from December 14, 2024, to February 15, 2025.

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 realize GST savings of $100 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.

Under the proposed measures announced Thursday, the following food and beverage items will get a tax break for two months:

  • Bottled water or unbottled water that is dispensed at a permanent establishment of the supplier
  • Alcoholic beverages (excluding spirits but including wine, beer, ciders, and spirit coolers up to seven per cent ABV)
  • Carbonated beverages, non-carbonated fruit juice or fruit flavoured beverages or products that, when added to water, produce one of these beverages
  • Candies; confectionery classed as candy or goods sold as candies (e.g., candy floss, chewing gum, and chocolate); fruits, seeds, nuts or popcorn coated or treated with candy, chocolate, honey, molasses, sugar, syrup, or artificial sweeteners
  • Chips, crisps, puffs, curls, or sticks (e.g., potato chips, corn chips, cheese puffs, potato sticks, bacon crisps, and cheese curls), popcorn, brittle pretzels, and salted nuts or seeds
  • Granola products and snack mixtures that contain cereals, nuts, seeds, dried fruit, or other edible products
  • Ice lollies, juice bars, ice waters, ice cream, ice milk, sherbet, frozen yoghurt or frozen pudding, including non-dairy substitutes
  • Fruit bars, rolls or drops or similar fruit-based snack foods
  • Cakes, muffins, pies, pastries, tarts, cookies, doughnuts, brownies, croissants with sweetened filling or coating (note that many bread products, such as bagels, English muffins, croissants, and bread rolls, are already zero-rated)
  • Pudding, including flavoured gelatine, mousse, flavoured whipped dessert product, or any other products similar to pudding
  • Prepared salads, sandwiches, platters of cheese, cold cuts, fruit or vegetables, and other arrangements of prepared food
  • Food or beverages heated for consumption
  • Beverages dispensed at the place where they are sold
  • Food or beverages sold in conjunction with catering services
  • Food or beverages sold at an establishment where all or substantially all of the food or beverages sold are currently excluded from zero-rating (e.g., a restaurant, coffee shop, take-out outlet, pub, mobile canteen, lunch counter, or concession stand)

    Source: More money in your pocket: A tax break for all Canadians – Canada.ca