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Tax Cut Could Make Canadian Ski Trips Cheaper
Photo: James D. Morgan/Getty Images

A proposed temporary tax break could make ski trips to Canada a little bit cheaper—if only for a few months.

Yesterday, the Department of Finance Canada announced plans to suspend the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) between December 14th, 2024, and February 15th, 2025.
 
GST is a federal sales tax. The HST is used in provinces that combine federal and provincial sales taxes.

“With a GST/HST exemption across the country, Canadians will be able to buy essentials like groceries, snacks, and kids clothing—all tax-free,” reads a statement from the Canadian government.

These are the goods and products that are included in the tax break:

  • Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.
  • Restaurant meals, whether dine-in, takeout, or delivery.
  • Snacks, including chips, candy, and granola bars.
  • Beer, wine, cider, and pre-mixed alcoholic beverages below 7 percent ABV.
  • Children’s clothing and footwear, car seats, and diapers.
  • Children’s toys, such as board games, dolls, and video game consoles.
  • Books, print newspapers, and puzzles for all ages.
  • Christmas trees.

Christmas trees aren’t something American skiers tend to grab when they head up north. But food and alcohol? That’s a different story.
 
The potential savings here aren’t immense. The Canadian government estimated that if a family spent CAD 2,000 on qualifying products over the two-month period, they’d save CAD 100. In provinces where the HST is also slated for removal—Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island—the savings jump to CAD 260.

However, the tax break could slightly boost the primary financial advantage American skiers have when they visit Canadian resorts—the US dollar is significantly stronger than the Canadian dollar.
 
For instance, a mid-season lift ticket at Whistler Blackcomb, British Columbia, currently costs CAD 252 on January 8th. In US dollars, that same ticket is only $181.

The tax break, of course, wasn’t crafted with American skiers in mind. Canadians, like Americans, have recently struggled with affordability. Yet, according to the CBC, some economists fear that the tax break could trigger inflation this spring.

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This article first appeared on Powder and was syndicated with permission.

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