Due to the announcement of a two-month tax holiday in Canada, many products were offered for sale without tax.

Canada has announced a tax holiday on certain products from December 14 to February 14. Federal taxes have been eliminated on a wide range of items, from restaurant meals to children's clothing, toys, and books.

VALID ACROSS THE COUNTRY

Canadian Prime Minister Justin Trudeau announced an economic package worth CAD 6.3 billion (USD 4.5 billion) that includes a temporary exemption from federal sales tax and a one-time payment of CAD 250 for more than 18 million Canadians.

The plan has the support of the New Democratic Party, the opposition party that withdrew from the power-sharing agreement with Trudeau's government earlier this year. The agreement regarding the tax and rebate package aims to enhance the government's stability in Parliament, reducing the likelihood of early elections.

The measures also aim to restore support for Trudeau's Liberal Party, which has fallen far behind its Conservative Party rivals.

Public opinion polls indicate that concerns about the cost of living and housing expenses have decreased the Prime Minister's popularity.

Trudeau stated, "Our government cannot set prices, but we can put more money in the pockets of Canadians, especially working Canadians."

TAX EXEMPTION ON SOME PRODUCTS

The government announced that it will eliminate the federal goods and services tax on various items starting from December 14 until February 15. This will include takeout meals, restaurant bills, snacks, alcohol, children's clothing and toys, books, newspapers, puzzles, and Christmas trees among the expenses exempt from tax.

BUDGET DEFICIT IN GOVERNMENT

The package will raise questions about the cost to the federal treasury. Canada's budget watchdog has warned that Trudeau's government has exceeded its self-imposed fiscal limits. Parliamentary Budget Officer Yves Giroux predicts that the federal government will run a deficit of CAD 46.8 billion (USD 33.5 billion) in 2023-24.

Finance Minister Chrystia Freeland had projected a CAD 40 billion deficit in the April budget. The government has not yet released the final figures from the previous fiscal year.