Today, the Government of Newfoundland and Labrador announced that it is adding to its affordability measures by matching the Government of Canada’s recently announced GST/HST tax break on essentials which will provide an estimated $48 million in provincial tax relief.
The GST/HST tax break will start on December 14, 2024, and will be in place until February 15, 2025. This will apply to:
- Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.
- Restaurant meals, whether dine-in, takeout or delivery.
- Snacks, including chips, candy and granola bars.
- Beer, wine, cider and pre-mixed alcoholic beverages below 7 per cent ABV.
- Children’s clothing and footwear, car seats and diapers.
- Children’s toys, such as board games, dolls and video game consoles.
- Books, print newspapers and puzzles for all ages.
- Christmas trees.
Further implementation details from the Government of Canada, including all qualifying goods, are available here.
Quotes
“Today, we are announcing that we will match the Government of Canada’s GST/HST tax break on essentials from December 14, 2024, until February 15, 2025. This is yet another step we are taking to support Newfoundlanders and Labradorians with affordability measures.”
Honourable Dr. Andrew Furey
Premier of Newfoundland and Labrador
“Over the past couple of years, we have introduced well over $700 million in affordability measures to help residents of the province. Our decision to remove the provincial portion of HST on essential items will provide additional support for residents and businesses. This measure will be implemented by an amendment to the Federal Excise Tax Act.”
Honourable Siobhan Coady
Deputy Premier and Minister of Finance
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BACKGROUNDER
Provincial Government Affordability Measures
- Removing the provincial portion of HST on essential items.
- Lowering the gas tax, reducing the cost of registering passenger vehicles, and providing free driver medicals for seniors 75 and over.
- Home heating supplement and elimination of the retail sales tax on home insurance.
- Increases to the income supplement, the seniors’ benefit and child benefit.
- Lowering child care costs to $10 a day.
- Reducing the corporate income tax payable for 6,200 small businesses.
- Increasing the exemption threshold for Health and Post-Secondary Education Tax for 1,250 businesses.
- Introducing tax credits for manufacturing and processing, film and video, and green technology.