Many stores are facing varying tax rules for similar items once the moratorium takes effect.
Buying your child a picture book for the holidays? That’s tax-free. A colouring book? No such luck. Bringing a bottle of wine to a holiday dinner? After Dec. 14, that will be GST-exempt, but if you pick up a nice whisky for your host, it will be taxed. Kids’ clothing won’t be taxed, but if it’s “used exclusively in sports or recreational activities,” GST applies.
Katherine Cuplinskas, spokesperson for Finance Minister
Chrystia Freeland, said the government drew up its list of affected items by, first, wanting to capture groceries and other essentials that are a pressure point for many Canadians. She said many food items are already exempt from the GST, so officials targeted items that aren’t, such as prepared foods. As well, because the holidays can be an expensive time for families, they included children’s clothes and toys, and Christmas trees.
She said the tax break extends through January because that tends to be a lull time for many businesses, such as restaurants.