A bill has been passed that allows for a two-month tax break from the Goods and Services Tax (GST) in Canada, starting from December 14, 2024. This measure will provide a tax exemption on many basic goods such as food, children's clothing, books, and some meals in restaurants, aimed at helping Canadian families cope with the pressures of rising prices.

This measure is expected to cost the Canadian government about $6.3 billion, and it also includes a one-time payment of $250 for eligible citizens, which will be distributed in the spring of 2024. Although this decision faced opposition from several parties, including the Conservative Party, the government sees it as a necessary step to alleviate the economic challenges faced by Canadian citizens at the moment.

The bill was approved in the Canadian House of Commons, and the tax exemption will remain in effect until February 2025.

In a tweet on the X platform, Canadian Foreign Minister Mélanie Joly stated that after attempts by the Conservative Party to hinder it, the bill was passed in the House of Commons last night.

She clarified that starting from December 14, families will receive the support they need to make life more affordable.

Beginning on December 14, 2024, Canada will implement a temporary tax break on the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) for two months, whereby consumers will be exempt from paying these taxes on a range of essential goods. This decision includes many essential products such as children's clothing and shoes, printed books, Christmas trees, and some foods and beverages intended for human consumption.

This step aims to reduce the financial burden on Canadian families during the holiday season, while providing an opportunity to save on the costs of some goods that citizens require daily. For example, a family that spends about $2,000 on eligible goods could save up to $100 if the GST were applied.

Additionally, eligible Canadians will receive a one-time payment from the financial support program in early 2025, to help low- and middle-income families adjust to rising costs.

These measures are part of the Canadian government's efforts to relieve the economic challenges faced by citizens at this time, especially amid rising prices.