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Products Affected

Food:

• Prepared foods: sandwiches, salads, platters, and pre-made meals
• Snacks: chips, crisps, puffs, curls, sticks (like potato chips, cheese puffs, etc.), popcorn, brittle pretzels
• Candies: including gum, candy floss, chocolate
• Granola products: like granola bars (excluding breakfast cereals)
• Snack mixes: containing cereals, nuts, seeds, dried fruit (excluding breakfast cereals)
• Ice treats: ice lollies, juice bars, flavoured or sweetened ice waters Ice cream and frozen treats: ice milk, sherbet, frozen yogurt, non- dairy substitutes
• Fruit snacks: fruit bars, rolls, or similar snacks
• Baked goods: cakes, muffins, pies, cookies, donuts, croissants with sweet fillings (prepackaged in quantities less than six)
• Energy or protein bars: if marketed like regular snacks and considered food by Health Canada

Drinks:

• Non-alcoholic drinks: coffee, tea, sodas, juices, smoothies
• Alcoholic drinks: canned or bottled beer, pitchers of beer, wine, cider, sake (22.9% alcohol or less), spirit coolers, premixed alcoholic drinks (7% alcohol or less)
• Energy or protein drinks: if marketed like regular drinks and considered beverages by Health Canada.

The tax holiday applied to a wide range of essential items, most notably:

1. Groceries:
   • Basic grocery items, such as fruits, vegetables, meat, dairy, bread, and non-alcoholic beverages, were exempt from GST/HST.
   • Prepared food sold in grocery stores (e.g., sandwiches or pre- cooked meals) also benefited from this break.
   • Food services such as restaurants, cafes, and food trucks, which typically charge GST/HST, were temporarily exempt from this tax on many food items.
2. Children’s Products:
   • Items for babies and young children like diapers, clothing, footwear, and car seats.
   • Children’s books, including printed and some e-books, were also included.
3. Books and Printed Media:
   • Books (physical books and some print media) were tax-free.
   • Newspapers (both print and digital) could also be tax-exempt if they met specific criteria.
4. Christmas Trees and Decorations:
   • Artificial and real Christmas trees, plus decorations and wreaths used for the holiday season.
5. Video Games:
   • Video game consoles and software like gaming consoles, games, and accessories.

How It Will Impact Your Grocery Bill After February 15, 2025:

As of February 16, 2025, when the GST/HST holiday ends:

• GST/HST Will Be Reintroduced: For most products, the standard GST rate (5%) and HST (up to 15% in some provinces) will apply again.

For example, if you spend $100 on groceries:

• Under the tax break, you paid $100, as no GST/HST was charged. After the break ends, you'll pay $105 for the same groceries, since 5% GST would be applied.

How Will This Affect Your Grocery Bill Specifically?

1. Higher Grocery Costs:
   • The main impact will be the small increase in grocery costs due to the return of GST/HST. Although it’s only 5% federally, it can add up. If you are a family buying $200 worth of groceries, you will see a $10 increase in the bill when the tax comes back
2. Food Inflation Impact:
   • Canada has been facing food inflation, with grocery prices seeing annual increases, although these have been moderating. In January 2025, food inflation slowed to -2.2%, largely due to the GST/HST holiday.
   • Ending the holiday may increase the inflation rate slightly, particularly in the short term, as people adjust to the re-introduction of taxes on grocery bills.
3. Other Affected Products:
   • If you bought items like children’s clothes, toys, or books, expect the same kind of increase. For example, a $50 purchase of children’s clothes could add another $2.50 in taxes.
   • If you bought Christmas trees or holiday decorations during the holiday period, you likely got them tax-free, but now the standard tax will apply on similar seasonal purchase
4. No Change to Non-Essential Items:
   • Products that were never included in the holiday (like electronics, alcohol, or non-essential goods) will not see any change. They were always subject to GST/HST.

Why Does This Matter?

• For lower-income families, the reintroduction of taxes could make essential goods just a bit more expensive, especially if they were relying on the temporary break.
• Overall, the increase isn’t massive, but for those who rely heavily on grocery stores or have large families, this could be more noticeable. It will also disproportionately affect those with tighter budgets, as even small increases can add up over time.

Will the Break Make a Long-Term Difference?

• In the short term, the holiday reduced some pressure on household budgets, with savings on things like food, clothing, and toys.
• However, as the tax relief ends, the cost of living might feel slightly higher for families as grocery bills rise, even if only a little bit.

In conclusion, while the tax relief was helpful for a few months, the end of this break will raise grocery prices and costs on some other essential items. It’s not a huge increase, but it is enough to affect budgets, especially for those already struggling with inflation.

Ways to Save Even After the GST/HST Holiday Ends:

While the return of GST/HST on select essential items may increase the cost of groceries and other products, there are still several strategies you can use to manage and minimize the impact of this tax reintroduction.

1. Take Advantage of Store Sales and Discounts:
   Shopping during promotional periods, such as weekly sales, clearance events, or holiday discounts, can help you save money. Even with the return of GST/HST, getting items on sale means you can still lower your overall spending. Check out our weekly flyer at: https://www.arcticbuyingco.com/flyer.pdf
2. Buy in Bulk:
   Consider buying larger quantities of essential products that are non- perishable, such as canned goods, rice, pasta, and toiletries. Bulk purchases often come at a lower unit price, and many stores offer bulk discounts or promotions. This can also help you avoid frequent trips to the store, which might lead to spending more. Check out our Canteen for food service sized case lots.
3. Prioritize the Essentials:
   Since the GST/HST holiday primarily applied to essential items, focus on purchasing those essential goods that still offer the most value. By being mindful of your purchases and avoiding non-essential items, you can reduce your spending overall.
4. Meal Planning and Reducing Food Waste:
   Plan your meals ahead of time to ensure you buy only what you need, which can reduce impulse buys and help you use ingredients more effectively. Reducing food waste means you’ll get more value out of what you purchase, keeping your grocery bill in check.
5. Consider Store-Brand Products:
   Opting for store-brand or generic products instead of name-brand items can help you save money, as they are often priced lower even with the return of tax. Many store-brand products offer the same quality as name-brand ones at a fraction of the price. We provide a variety of tried and tested valued products such as President's Choice, No Name and Select brands!
6. Take Advantage of Tax-Exempt Items:
   Be mindful of which items remain exempt from GST/HST. For example, books, newspapers, and children’s clothing may still be exempt, and focusing on these tax-free categories for gifts and purchases can still provide significant savings.
7. Shop with Save Arctic Buying Company:
   www.arcticbuyingco.com if you can think it up, we can ship it up!

In conclusion, while the tax relief was helpful for a few months, the end of this break will raise grocery prices and costs on some other essential items. It’s not a huge increase, but it is enough to affect budgets, especially for those already struggling with inflation.

For More Information:

For more detailed information, you can refer to the following resources:

Canada Revenue Agency (CRA) – GST/HST Break This page provides comprehensive details on the GST/HST relief, including eligibility criteria and how it applies to various goods and services.
canada.ca

Canada Border Services Agency (CBSA) – GST/HST Break on Imported Items
Information about the GST/HST relief applicable to imported goods during the specified period. cbsa-asfc.gc.ca

**Please note that these links provide information up to the end of the relief period on February 15, 2025. After this date, the standard GST/HST rates will apply to all applicable items.**