Canadian Government Announces Tax Relief and Short-Term Rental Fund

The Canadian government has announced a temporary tax relief on certain goods and a new fund to address short-term rental issues. From December 14, 2024, to February 15, 2025, the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) will be removed from a range of holiday essentials. This includes groceries, restaurant meals, snacks, children's clothing, and gifts. The government estimates this will provide $1.6 billion in federal tax relief. Families spending $2,000 on these goods could save $100 in GST, with additional savings in provinces where HST is also removed.

In addition, the government has introduced the Short-Term Rental Enforcement Fund, allocating $50 million over three years to help municipalities and Indigenous communities enforce short-term rental regulations. This fund aims to ensure that housing remains available for long-term residents by supporting enforcement activities such as hiring staff and managing complaints. Applications for this fund will be open from December 16, 2024, to January 24, 2025.

These measures are part of the government's efforts to provide financial relief to Canadians and address housing availability issues.