Canadians won’t have to pay GST or HST on a selection of items this holiday season, the prime minister vowed on Thursday.
Prime Minister Justin Trudeau announced the news during a morning news conference, promising relief to Canadians still dealing with cost-of-living concerns. The tax break, which still needs approval in the House of Commons, will last for two months.
Here is a full list of items which will be included in the tax break:
Food and beverages
- Alcoholic beverages, but only wine, beer, ciders and spirit coolers up to seven per cent alcohol by volume.
- Candies, including candy floss, chewing gum, and chocolate, as well as fruits, seeds, nuts or popcorn coated or treated with candy, chocolate, honey, molasses, sugar, syrup or artificial sweeteners
- Salty snacks including chips, crisps, puffs, curls, sticks, popcorn, brittle pretzels and salted nuts or seeds
- Granola products and snack mixtures that contain cereals, nuts, seeds, dried fruit or other edible products
- Popsicles, juice bars, ice waters, ice cream, ice milk, sherbet, frozen yogurt 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 and croissants with sweetened filling or coating
- 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 and those bought as part of a catering service
Kids’ stuff and games
- Children’s clothing, including garments up to girls’ size 16 or boys’ size 20, baby bibs, socks, hosiery, hats, mittens and gloves, scarves and shoes
- Children’s diapers
- Children’s car seats
- Children’s toys, designed for kids under 14, and jigsaw puzzles
- Video-game consoles, controllers and physical editions of video-games
Literature and trees
- Print newspapers
- Printed books and audiobooks
- Christmas trees
What is GST?
GST, which stands for goods and services tax, is a federal tax that applies to most, but not all, goods and services in Canada.
In New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and P.E.I., the GST has been blended with the provincial sales tax and is called the harmonized sales tax (HST). The GST/HST rates are between five and 15 per cent, depending on the province you live in.
The tax does not apply to what the government calls “basic groceries,” which includes fresh, frozen, canned and sealed fruits and vegetables, cereals, most milk products, fresh meat, poultry, fish, eggs and coffee. Sweetening agents and other basic ingredients are also exempt from the tax.