In late November of 2024, the Federal government announced a temporary exemption period from December 14, 2024, to February 15, 2025, for specific items that typically incur GST or HST. Regrettably, this decision was made without thorough consideration prior to the announcement or the introduction of legislation. The projected savings for taxpayers are minimal, while all retailers are now tasked with the challenge of reprogramming their point-of-sale systems twice, in December and then again in February. This adjustment will be especially burdensome for small retailers, who may need to seek external assistance for reprogramming at a significant cost.
Bill C-78, the Tax Break for All Canadians Act, was tabled in the House of Commons and passed third reading on November 28, 2024. It must be approved by the Senate before achieving Royal Assent.
Canada Revenue has provided guidance on this measure, with details of which items qualify for the exemption. See GST/HST holiday tax break.
Do you believe this is a genuine advantage for Canadians? We would appreciate hearing your thoughts on the matter.