The federal government has announced that it will be introducing legislation for a temporary GST pause on select goods from December 14, 2024, to February 15, 2025.

During this period, businesses will be expected to remove the GST on the following goods:

• Prepared foods, including carbonated beverages, confectionaries, and desserts
• Restaurant meals, catering, and other types of pre-made meals
• Alcoholic beverages below 7% ABV, including wine, beer, ciders, and spirit coolers
• Children’s clothing, footwear, and diapers
• Car seats
• Children’s toys, board games, and card games
• Printed books and newspapers
• Video game consoles, controllers, and physical game media
• Christmas trees both natural and artificial

The GST would also be relieved on the importation of these goods if they are imported within the specified time period.

This initiative is projected to cost $1.6 billion in tax revenues, and the federal government has estimated that an average family spending $2,000 on qualified goods in this period would save around $100 in total. For Saskatchewan businesses, this presents an opportunity to attract customers and coordinate promotions. However, the short duration of this tax pause will also create administrative burdens for small businesses during one of the busiest times of the year.

Not only will business owners need to update their point-of-sale systems and signage twice in the span of two months, but employees will need to be informed of how to deal with tax-free transactions and customer concerns. More accounting work will also be required to ensure that this break does not cause issues during tax season.

While the Chamber is supportive of the federal government lowering taxes for Canadians, we emphasize the need for long-term strategies to address the systemic issues which are impacting our businesses and communities. One of these issues is the federal Carbon Tax, which remains a significant burden for many industries in our province. Discontinuation of the Carbon Tax was the #1 federal priority identified by our members in 2024, and the Chamber remains committed to advocating for its complete removal. Since 2019, $32 billion has been collected from Canadians, with less than 8% of this revenue being returned to small businesses. Meanwhile in Saskatchewan, removing the Carbon Tax from home heating has saved the average family an estimated $400 in 2024 and $480 in 2025.

We believe in long-term solutions to reduce business costs in Canada. This includes policies that not only alleviate financial pressures but also encourage innovation, drive investment, and support sustainable growth across all sectors of the economy. A thriving business community is essential for creating jobs, building resilient communities, and ensuring Canada’s economic competitiveness on the global stage.