Friday, November 29, 2024

Diapers? Yes. Skates? No. A look at items getting a tax holiday

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TORONTO — The federal government says cost-conscious families are among the groups set to benefit from a proposed tax holiday, a temporary policy that will make many children’s items and packaged foods tax-free for two months.

The list runs the gamut from Christmas trees to booster seats, but exceptions abound: shoes but not cleats; video game consoles but not headsets; stuffies but not hockey cards.

Here’s a closer look at the items that will or won’t qualify for a GST/HST exemption, set to begin Dec. 14.

CHILDREN’S CLOTHING

The list of clothes slated for tax relief include garments up to size 16 for girls and size 20 for boys. It also includes children’s sizes extra small to large. Footwear must have an insole that’s 24.25 centimetres or less.

It excludes adult clothing and footwear, even if bought for a child.

Specialized items designed exclusively for sports or recreational activities are also excluded: wetsuits, soccer cleats, bowling shoes, skates, ski boots, tap shoes and pointe shoes.

But the Liberals’ Bill C-78, which was being voted on Thursday, would offer tax relief on sports clothing and dancewear that can be worn outside of sports or dance activities, such as jerseys, ski jackets, leotards, unitards, bodysuits, and swimwear.

VIDEO GAMES

The tax holiday extends to video game consoles, controllers and physical game media, such as a video-game cartridge or disc.

It does not apply to downloadable or online-only games, nor does it apply to other gaming accessories, like chairs and headsets.

Other tech gear that makes many Christmas wish-lists, such as headphones, phones or smartwatches, is not part of the announcement and won’t be tax free.

TOYS

Parents hunting for the perfect holiday gift may also find some tax relief among most children’s toys, defined as things “designed for use by children under 14 years of age in learning or play.”

The tax relief applies to board games, card games and puzzles; dolls, figurines and stuffies; construction toys like blocks and Lego; and vehicles, playhouses and other toys that mimic real-world items.

It does not include collectibles that are not intended for play or learning, such as hockey cards and collectible dolls, nor model sets that are marketed for adults, like adult Lego or train sets.

Also excluded are makeup, costumes and jewelry.

FOOD AND DRINKS

Restaurant meals are on the list, as are prepared foods like sandwiches, salads, vegetable or cheese platters, and catered meals.

A good chunk of the grocery items are packaged, grab-and-go snacks popular among families that rely on hastily assembled lunch boxes and coolers filled with after-practice snacks. They include granola and fruit-based snacks, candy, gum, chocolate and munchies like potato chips, cheese puffs, popcorn, salted nuts and seeds.

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