Ontario to match federal government’s two-month sales tax holiday

The Ford government is matching the two-month sales tax break offered by the federal Liberals.

“The provincial government will match the federal government’s two-month GST holiday by removing PST from items not currently covered by existing provincial rebates,” read a statement from the office of Finance Minister Peter Bethlenfalvy.

The move is expected to provide almost $1 billion in additional relief for Ontario families, according to the Ford government.

Last week, the federal Liberals announced it would not charge GST on several items including prepared foods, restaurant meals, children’s clothing and toys, books and newspapers and certain alcohol products from Dec. 14, 2024, to Feb. 15, 2025.

Ontario has long removed the provincial portion of the harmonized sales tax from similar items listed in Ottawa’s GST break plan, such as children’s clothes and some food. Where the provincial and federal sales taxes are blended into a harmonized sales tax the entire HST would be removed from such items.

The federal Liberals also plan to give $250 to more than 18.7 million Canadians in the spring while eligible Ontarians will receive $200 rebate cheques from the Ford government in 2025.

The federal NDP says while they support the Liberal plan to give Canadians a GST break during the holidays, they will not back the rebate proposal unless the government expands eligibility to the most vulnerable.

NDP Leader Jagmeet Singh says he would like to see the rebate include seniors, students, people who are on disability benefits and those who were not able to work last year.