Canada’s GST Holiday tax cut ends soon and food will get more expensive

It’s your last week to make the most of the GST break in Canada.

In November, Prime Minister Justin Trudeau announced the two-month GST cut on groceries and other items as we headed into the busy and costly gift-giving season.

The tax break began on December 14, 2024, and will end in almost a week on February 15.

Some of the highlights from the list of products include groceries, beer and wine, restaurant meals (dine-in, takeout, or delivery), essential childcare items, and even Christmas trees. Check out the full list of items eligible for the GST cut.

The government estimated the policy would provide $1.6 billion in federal tax relief.

It comes as Canadians grapple with unaffordable housing and high food costs, so much so that one international student has resorted to living in his car instead of renting an apartment.

The end of Canada’s GST break coincides with heightened tensions with the U.S. and uncertainty for Canadians’ expenses amid the possibility of tariffs.

Trudeau not providing “substantial” relief

After the initial announcement, NDP Leader Jagmeet Singh said the policy was “far from the substantial and permanent relief” the party is pushing for.

“As usual, the Liberals are letting people down with their choice to make this a short-term tax holiday on only some items,” he stated.

Despite this, the NDP voted for the GST break. Singh said the party would continue vigilantly campaigning to scrap the tax on daily essentials and monthly bills permanently.

Opposition calls GST break a “tax trick”

Conservative Party Leader Pierre Poilievre also responded to Trudeau’s GST holiday, calling it a “two-month, temporary tax trick.”

Poilievre noted that this would not “make up for the permanent quadrupling carbon tax on heat, housing, food, and fuel, and all to save Justin’s job and Jagmeet’s pension.”

He added that his party is calling for alternative solutions, such as permanently axing the carbon tax and removing GST from new homes.

If you’re wondering how much the GST break might have reduced your grocery bill, we calculated the estimated savings.

A report published this week by Canadian fintech firm Moneris showed despite the tax break, spending was down year-over-year.