ASSINIBOIA — The Government of Canada announced a holiday, but not the traditional holiday you are accustomed to. From Dec. 13 to Feb. 15, Prime Minster Trudeau announced a tax holiday from GST.
Good tax news? Wait, there’s always a catch. This GST holiday will be applied to certain items only and the PST will be applied to the applicable province.
Items such as children’s clothing size XS to L, including girl’s size 16 and boy’s size 20 are in the mix as is children’s footwear or babies with an insole of 24.25 cm or less. Diapers and car seats are included in the temporary tax break. However, clothing and footwear that are specifically for customers, sports or recreational activities are excluded from this exemption.
Many in the retail sector have voiced concerns with trying to manage all the stipulations for the nine weeks this exemption is to run for.
Toys for children under 14 will also be included, but the terminology “some toys” such as those designed to encourage learning or play, such as board games, card games, dolls, stuffed toys, jigsaw puzzles and video game consoles will see the GST removed. The exemptions are causing much confusion and questions for consumers and retailers alike.
Reading newspapers and books will be included in the tax exemption at purchase, which also includes audiobooks and printed versions of scripture of any religion. But once again, there’s a catch as items that may be on Christmas lists or New Year’s resolutions such as magazines, brochures, sales catalogues, notebooks or journals, activity books, and day planners will stay pay the GST.
But wait, this might be the government gift you are hoping for. Beverages including wines, beer ciders, spirit coolers up to seven per cent alcohol by volume, carbonated beverages, non-carbonated fruit juice or water additives that produce a similar product will be GST exempt for two months.
Another gifted GST exemption includes snack foods like candies, fruits, seeds, nuts, popcorn. Chips, chip-like snacks, granola products and snack mixtures are also covered.
Consumers hoping for real relief in the grocery store will have a two-month exemption on baked sweet goods, puddings and prepared foods.
Diners can enjoy a meal out will also see some tax pain relief as the exemption will apply to restaurant bills. Food and beverages from coffee shops, pubs, mobile canteens, lunch counters, take-out outlets and concession stands are also said to be included in the short-term tax break.
The government website states, “As a shopper, you will automatically receive this tax break on the qualifying things you buy. There will be no GST/HST charged on the item when you make your purchase.
If you are still left wondering about the exact details or to know more about what is and is not included you can reach out to your local accountant, or check out the government website, https://www.canada.ca/en/services/taxes/child-and-family-benefits/gst-hst-holiday-tax-break.html.
