As the busy and costly holiday season approaches in Canada, Prime Minister Justin Trudeau’s government has introduced temporary cuts to the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST). These cuts, which will last for two months, aim to alleviate some financial pressure on families by applying to a variety of essential items.
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Key Items Included in the GST/HST Cut
The temporary tax reduction applies to a broad range of items commonly purchased during the holiday season. These include food, beverages, children’s products, and holiday essentials. Here’s a comprehensive breakdown of what’s covered:
Food and Beverages
- Alcoholic Beverages: Excluding spirits, but including wine, beer, ciders, and spirit coolers (up to 7% ABV).
- Carbonated and Non-carbonated Beverages: Fruit juices, fruit-flavored drinks, and products that, when added to water, produce similar beverages.
- Snacks and Confectionery: Items like candies, chips, popcorn, granola products, and ice cream (including non-dairy substitutes).
- Prepared Food: Ready-to-eat foods such as sandwiches, salads, cheese platters, and other pre-prepared items.
Children’s Products
- Children’s Clothing and Footwear: Garments for babies and children up to size 16 for girls or 20 for boys, including footwear with an insole length of 24.25 cm or less.
- Children’s Toys: Board games, plush toys, action figures, and construction toys like Lego or STEM kits.
- Car Seats and Diapers: Items like car seats that meet Canadian safety standards, as well as diapers, training pants, and rubber pants.
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Holiday Decorations and Other Essentials
- Christmas Trees: Both natural and artificial trees are covered.
- Printed Materials: Print newspapers and books, including religious texts, are exempt from the tax.
These temporary GST and HST cuts are designed to help families manage the costs associated with the holiday season. From food and beverages to children’s toys and clothing, the government is helping to make these essential items more affordable during this busy time of year.
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