A GST Holiday: Trudeau Places Two Gifts Under the Tree

As the holiday season approaches and inflation continues to strain wallets, Justin Trudeau and his government have announced two initiatives aimed at easing the cost of living: a GST holiday—which will benefit both restaurant customers and owners—and a one-time $250 check for certain individuals. These measures, estimated to cost $6.3 billion, are designed to support Canadians during this critical time of year.

From December 15 to February 15, a 5% exemption on the Goods and Services Tax (GST) will apply to a wide range of goods and services. Included in the list are restaurant meals, low-alcohol beverages, children’s clothing, and even Christmas trees. This initiative will cover everyday purchases as well as festive expenses, such as desserts and board games. More directly relevant to our sector, dining out will become a little more affordable.

At the same time, a $250 check will be issued in spring 2025 to all Canadian workers earning less than $150,000 annually. According to the government, this boost is intended to help those navigating a challenging economic landscape. One might wonder if setting the threshold at $50,000 instead would have been more appropriate. Just saying.

“We can’t control prices, but we can put more money into people’s pockets,” said Justin Trudeau.

Love it or hate it, this initiative comes at a time when it can help ease holiday concerns—though at what cost?

Happy Holidays!


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