Bill C-78, the Tax Break for All Canadians Act received Royal Assent, making essentially all food and many holiday essentials tax-free for two months.

Businesses will be required to remove the GST/HST on holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts, from December 14, 2024, until February 15, 2025.

The following items are to be tax-free:

• Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches;
• Restaurant meals, whether dine-in, takeout, or delivery;
• Snacks, including chips, candy, and granola bars;
• Beer, wine, and cider;
• Pre-mixed alcoholic beverages below 7 per cent ABV;
• Children’s clothing and footwear, car seats, and diapers;
• Children’s toys, such as board games, dolls, and video game consoles;
• Books, print newspapers, and puzzles for all ages; and,
• Christmas trees and similar decorative trees.