Government tables legislation to put more money in your pocket

From: Department of Finance Canada

News release

November 27, 2024 - Ottawa, Ontario - Department of Finance Canada

The government can’t set prices at the checkout, but it can help Canadians with more money in their pocket. To help them buy the things they need and save for the things they want, today the government introduced Bill C-78, the Tax Break for All Canadians Act in Parliament. Bill C-78 proposes to provide a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts. Bill C-78, the Tax Break for All Canadians Act would provide real relief at the cash register by making the following items tax-free from December 14, 2024, through February 15, 2025:

  • 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, and cider;
  • 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; and,
  • Christmas trees and similar decorative trees.

The government encourages all Parliamentarians and all parties to get Bill C-78 passed quickly and unanimously so we can make essentially all food and many essentials tax-free. This pragmatic tax relief is something we can all support—making life easier for workers and working families during the holiday season, when they tend to face higher than usual costs. By working together, we can help workers start the new year with more money in their pockets.

Quotes

“Inflation is back down to 2 per cent and interest rates having been cut four times this year. At the same time, the holiday season is when expenses are highest for many Canadians and their families. With new tax relief on groceries and holiday expenses, we are reducing costs when they are highest for Canadians. Helping Canadians celebrate with family and friends is something all Parliamentarians and all parties should support.”

- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

Quick facts

  • The federal government’s tax break for all Canadians would fully relieve the GST/HST 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, a $2,000 basket of qualifying purchases realizes HST savings of $260 over the two-month period.

  • Following the government’s announcement of a tax break for all Canadians on November 21, 2024, BMO Economics revised its growth forecast upwards, reporting that, “the GST/HST rebate will drive additional spending…[and] is boosting Q1 [2025] GDP growth from 1.7 per cent to 2.5 per cent.”

  • The government is focused on making life more affordable for Canadians, with actions that are already saving workers and working families 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 eligible Canadians about $730 per year with the Canadian Dental Care Plan, which is already available for children under 18, people with disabilities, and seniors, with family incomes under $90,000, because no one should have to choose between taking care of their teeth and putting food on the table.

Associated links

Contacts

Media may contact:

Katherine Cuplinskas
Deputy Director of Communications
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

Stay Connected

Page details

Date modified: