GST Holiday Begins: What Shoppers Are Saying in Malls and Stores This Weekend

A receipt on the right shows a GST 5 percent tax and one on the left showing only the Quebec Sales Tax, in Montreal on Dec. 14, 2024. A two-month break from the federal GST takes effect today. The Canadian Press/Graham Hughes

RICHMOND HILL, Ont.—As the GST holiday went into effect this weekend, several shoppers told The Epoch Times they were unaware of it, some said it hasn’t impacted their shopping plans, and some plan on stocking up on certain items.

Bill C-78, which eliminates sales tax on goods and services, as well as the harmonized sales tax in participating provinces, passed on Dec. 12 and came into effect on Dec. 14, lasting until Feb. 15, 2025. It covers items like restaurant meals, groceries, alcohol, books, Christmas trees, and a variety of children’s products.

A GST savings display in a Canadian Tire store in Abbotsford, B.C., on Dec. 15, 2024. The Epoch Times

Among the excluded categories are food and drinks from vending machines, magazines, sports clothing, and some toys and collectibles.

Michelle Gillooly, a Toronto-area resident, said the tax break came “too late” for holiday shoppers, many of whom finished their Christmas shopping early, and that exemptions on other items besides holiday shopping offer little incentive for her.

“It won’t make me go out any more or any less,” she said. “I don’t think the savings will be all that noticeable, so it won’t change my shopping or eating habits.”

Gillooly adds that some people may be confused about which items are covered by the tax break, noting that she saw shoppers asking store clerks about items that are not on the eligible list.

Amsar Omarov, a father of two, said the GST holiday offers little relief for Canadian families already struggling with high taxes, especially since many items, like groceries and children’s clothing and diapers, are already exempt from the sales tax.

“We shouldn’t have that tax in the first place. We’re paying enough taxes already, and with this tax break, most of the items, tax is already not applied to,” Omarov said. “It doesn’t make any huge difference.”

About half a dozen shoppers told The Epoch Times that they had been unaware of the GST holiday.

An expectant mother, who wished to use the alias Jennifer Thompson, said she didn’t previously know about it, but now plans to use it to stock up on baby products.

“We’re expecting in three months and we have a lot to buy, so we'll definitely shop more and time our purchases for this period,” she said. “Definitely it’s gonna affect us in a good way.”

While stores specializing in children’s products reported an increase in customers, others said there wasn’t a noticeable difference.

Ranjan Gabad, manager of a toy chain store branch, estimates that about 30 percent more customers have inquired about the policy, but his store saw an overall increase in traffic of just 10 percent.

Gabad also noted some confusion regarding which items are exempt from the tax break, pointing out that while plushies are included, Blind Boxes, which are considered collectibles, are not.

“It’s hard to tell people, ‘Some of these don’t count.’ Honestly, we don’t even know why it doesn’t count,” he said.

Meanwhile, the government said the GST break will put between $100 and $300 back in people’s pockets on $2,000 worth of purchases over the next two months.

“Making essentially all food and many holiday essentials tax-free will leave Canadians with a little more money in their pockets—helping offset the cost of the things they need to celebrate the season with family and friends,” Finance Minister Chrystia Freeland said in a Dec. 12 press release.

The Conservatives have been critical of the measure, saying it’s a vote-buying initiative, with leader Pierre Poilievre calling the measure inflationary.

The tax break is automatic for in-store shoppers, with waivers applied at checkout for qualifying purchases, including:

• beer, wine, and cider, as well as pre-mixed alcoholic beverages below seven percent alcohol by volume;
• prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches;
• restaurant meals, whether dine-in, takeout, or delivery;
• some snacks, including chips, candy, and granola bars;
• children’s clothing, footwear, car seats, and diapers;
• children’s toys, such as board games, dolls, puzzles, and video game consoles;
• printed books, newspapers, and religious scriptures;
• Christmas trees, whether natural or artificial.

For remote shoppers, items must be paid for and delivered by the end of the eligible period to qualify. Delivery is defined as when an item is handed to a shipping service or mailed, not when it reaches the consumer.