The "Tax Break for All Canadians Act" (Bill C-78) amends the Excise Tax Act to create a temporary GST/HST holiday. This holiday will be in effect from December 14, 2024, to February 15, 2025. During this period, certain taxable supplies will have a zero percent GST/HST rate.
Goods that qualify for this temporary tax break include children's car seats, clothing, diapers, and footwear. Printed books and spoken audio recordings of printed books also qualify. Printed versions of religious scriptures are included as well. The bill also covers composite property, qualifying newspapers, Christmas trees (real or artificial), and certain tangible personal property designed for children under 14 for learning or play such as board games, toys and video game consoles.
Additionally, the temporary tax break applies to the service of providing, preparing, and serving food and drinks, including catering. This applies to food and drinks consumed on the premises or at another location. Certain alcoholic beverages, defined as "eligible beverages," are also included in the temporary tax break.
The bill also addresses goods imported into Canada and property brought into participating provinces during the eligible period. These goods and properties will be treated as included in the GST/HST holiday if they meet certain conditions outlined in the Act.
Inflation and Cost of Living
This bill aims to provide temporary cost of living relief by implementing a GST/HST holiday on select goods and services from December 14, 2024, to February 15, 2025. This means that during this period, consumers will not have to pay GST/HST on items such as children's clothing and car seats, books, Christmas trees, certain toys and games, and prepared food and beverages. The government hopes this will lower prices during the holiday season.
Taxation
The bill introduces a temporary GST/HST holiday, effectively reducing the tax rate to 0% on specific goods and services between December 14, 2024, and February 15, 2025. This amendment to the Excise Tax Act temporarily removes the GST/HST on items like children's clothing, books, and prepared food. The bill also includes specifics about how imported goods and goods brought into participating provinces will be treated during this period.