TORONTO — The temporary GST/HST holiday will end at 11:59 p.m. on Feb. 15, 2025. Restaurants Canada has been urging the government to make the GST/HST holiday permanent as it has been positively received by the foodservice industry and Canadians.
“We’ve seen an 18-per-cent increase in online reservations during this period, and our industry was able not only to maintain current jobs but also create 35,000 additional jobs since November 2024, reaching the highest employment level since the pandemic,” says Maximilien Roy, VP, Federal & Quebec, Restaurants Canada.
“The GST/HST holiday provided relief to Canadians and has been a vital support for our industry during the ongoing affordability crisis,” says Kelly Higginson, president and CEO of Restaurants Canada. “We are Canada’s fourth largest private-sector employer and one of the first to experience job losses in times of economic strain. The tax holiday is creating employment in communities across Canada and keeping people employed during a challenging time. Ending this tax relief now would directly hurt Canadian workers and families.”
January and February are the slowest months for the restaurant industry, which leads to lower employment levels. However, there were 67,500 more jobs in the industry in January 2024, a 6.1-per-cent increase compared to just two per cent across all industries.
Restaurants Canada has been calling on the federal government to permanently exempt all food from GST and HST or at least extend the tax relief until the tariff dispute with the U.S. is resolved. More than half (53 per cent) of restaurants are operating at a loss or just breaking even, compared to just 12 per cent pre-pandemic, largely because of reduced consumer spending.
“Canadians are already struggling to afford the essentials. If U.S. tariffs come into effect, we’re looking at more increases to the cost of living, including food. The government can provide some stability and relief to Canadians and the restaurant industry by keeping all food tax-free,” adds Higginson.
The organization has also heard concerns from members struggling to pay their invoices before the deadline to be eligible for the GST exemption. The Canada Revenue Agency (CRA) has stated:
“Businesses who make reasonable efforts to comply with the legislation will not be the focus of our compliance actions. We will be focusing on situations where businesses willfully and egregiously refuse to comply with the temporary measures, such as a business that collects the GST/HST and does not remit it to the CRA.1.”
