Due to the tax holiday, thousands of products from food to clothing are being sold tax-free.

The 'tax holiday' that will last for 2 months in Canada has begun. Under the "Tax Exemption Act for All Canadians" announced by Prime Minister Justin Trudeau, the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) have been eliminated on many products, from food to clothing, toys to alcoholic beverages, until February 15.

SPENDING INCREASE WILL BE ENSURED

This initiative, which is expected to save Canadians approximately $1.5 billion, is anticipated to be implemented in many categories and provide relief to many people struggling with rising living costs. According to parliamentary budget forecasts, individuals will see the direct effects of this initiative, allowing them to spend more on their needs and holiday gifts.

However, small business owners are reacting negatively to the decision. Especially, restaurants believe that this holiday tax reduction will not benefit them. Ontario Premier Doug Ford stated that the province will comply with the federal government's initiative and aims to facilitate consumers' full benefit from this holiday.

VALID UNTIL FEBRUARY 15

According to the law, for a product to be sold tax-free between December 14, 2024, and February 15, 2025, the full payment must be made and delivered by the end of the tax reduction period. The federal government has stated that a product will be considered delivered not when it reaches its destination, but when it is transferred from a supplier to a shipping company or mailed.

WHICH PRODUCTS WILL BE TAX-EXEMPT?

- Ready-to-eat foods such as sandwiches, salads, prepared meals, chips, candies, baked goods, fruit-based snacks, gift baskets provided that at least 90% of their contents consist of qualified food or beverage products, coffee, tea, soft drinks, fruit juices, alcoholic beverages such as beer, wine, cider, and sake with an alcohol content of 22.9% or lower, pre-mixed alcoholic beverages with an alcohol content of 7% or less, energy and protein powders.

- Meals purchased from pubs, bars, or food and beverage service establishments, mixed drinks served in restaurants and bars, catering services providing qualified food and beverages.

- Baby and children's clothing, accessories such as bibs, blankets, hats, and gloves, child car seats.

- Board games and card games, toys that encourage creativity for children, plush toys, puzzles suitable for all ages.

THE DEPUTY PRIME MINISTER RESIGNED

Meanwhile, recently in Canada, which has frequently been targeted by Trump, Deputy Prime Minister and Minister of Finance Chrystia Freeland announced her resignation from the cabinet, stating that she no longer agrees with Prime Minister Justin Trudeau on "the best path for the country."

In her resignation letter, Freeland expressed that Trudeau no longer wanted her to serve as finance minister and offered her another position in the cabinet, concluding that "the only honest and appropriate way is to resign," indicating a disagreement with the prime minister.

THERE ARE RUMORS THAT THE PRIME MINISTER WILL RESIGN TOO

Freeland pointed out that Canada is facing a serious challenge, recalling that the new administration to take office in the U.S. is pursuing an aggressive economic policy that includes a 25% tariff threat. Emphasizing that this threat must be taken very seriously, Freeland stated, "This also means keeping our fiscal powder dry from today, so that we may have the reserves we need for an impending tariff war."

With Freeland's resignation, the number of those calling for Prime Minister Justin Trudeau's resignation has increased, but the prime minister is signaling that he will continue in his position for now.