Federal Government’s GST Holiday Could Cost Billions

The federal government’s GST holiday could cost up to $2.7 billion if provinces don’t waive compensation agreements, says the parliamentary budget officer. From Dec. 14 to Feb. 15, Canadians will save at least 5% on items like kids’ clothing, video games, and restaurant meals. In provinces with harmonized sales tax, like Ontario, the savings will be higher, at 13% to 15%. The PBO estimates the holiday will cost $1.5 billion, but that could rise if provinces demand compensation from Ottawa. The measure is aimed at helping Canadians with affordability.