The Goods and Services Tax (GST) is a federal tax applied to most goods and services in Canada. Currently set at 5%, discussions about a possible increase in 2025 have sparked public interest. Here’s what you need to know about the potential GST changes, their impact, and what to expect.
GST Increase News 2025
GST is an essential tax that affects almost every Canadian consumer. It applies to everyday purchases such as:
- Clothing
- Car repairs
- Hotel stays
- Restaurant bills
- Electronics
In some provinces, GST is combined with the Provincial Sales Tax (PST) to form the Harmonized Sales Tax (HST), which varies by province. Here’s a quick breakdown:
| Province | Tax Type | Total Tax Rate |
|---|---|---|
| Ontario | HST | 13% |
| Nova Scotia | HST | 15% |
| British Columbia | GST + PST | 12% (7% PST + 5% GST) |
| Alberta | GST Only | 5% |
| Quebec | GST + QST | 14.975% (9.975% QST + 5% GST) |
The Canada Revenue Agency (CRA) recently introduced new guidelines regarding e-filing and payment procedures for GST/HST. One key update is the removal of the $1.5 million compulsory e-filing limit on yearly revenue, making tax compliance easier for businesses.
Expected GST Increase Amount
As of now, there is no official confirmation about an increase in GST for 2025. The current rate of 5% is expected to remain unchanged unless the government announces otherwise.
A Look at GST History:
- 1991: GST was introduced at 7%
- 2006: Reduced to 6% under the Harper government
- 2008: Further reduced to 5% (where it currently stands)
The Canadian government will issue official updates if any modifications are made to the GST rate. To stay informed, individuals and businesses should monitor updates from the Canada Revenue Agency (CRA).
GST Increase Overview
| Category | Details |
| Article Title | GST Increase News 2025 |
| Department | Canada Revenue Agency |
| Country | Canada |
| Year | 2025 |
| GST Change Date | New Tax Year (April) |
| Official Website | www.canada.ca |
Fact Check: Is GST Increasing in 2025?
Many rumors have been circulating about a potential GST hike. However, as of now, there is no confirmed increase. Any changes would typically be announced well in advance, especially at the start of the new financial year (April 2025).
Potential effects of a GST increase:
- Higher consumer prices on goods and services
- Increased GST credits for low-income individuals
- Higher revenue for government programs
While these are just possibilities, no changes have been confirmed.
GST Tax Rates by Province (2025)
| Province/Territory | GST/HST Rate |
| Yukon | 5% |
| Quebec | 5% |
| Manitoba | 5% |
| New Brunswick | 15% |
| Northwest Territories | 5% |
| Nova Scotia | 15% |
| Nunavut | 5% |
| British Columbia | 5% |
| Saskatchewan | 5% |
| Ontario | 13% |
| Alberta | 5% |
| Prince Edward Island | 15% |
| Newfoundland & Labrador | 15% |
Note: Some goods, such as basic groceries, prescription medications, and feminine hygiene products, are zero-rated and not subject to GST.
FAQs
Will GST increase in Canada in 2025?
There is no official announcement regarding a GST increase in 2025. The rate remains at 5% unless the government decides otherwise.
What happens if the GST increases?
If GST increases, prices of taxable goods and services may rise, and businesses will need to adjust their pricing accordingly. Low-income individuals might receive higher GST credits.
How does GST affect businesses?
Businesses must collect GST on taxable sales and remit it to the government. Small businesses with revenue below a certain threshold may be exempt from registering for GST.
How can I stay updated on GST changes?
For official updates, visit the Canada Revenue Agency (CRA) website at www.canada.ca or consult a tax professional.
Final Thoughts
For now, Canadians can continue to expect no changes in the GST rate for 2025. However, as discussions evolve, it’s essential to stay informed about any announcements from the federal government and CRA. Whether you’re a consumer or a business owner, staying updated ensures you’re prepared for any potential tax changes.
Click here to learn more
Sachin is an experienced writer with a strong background in education-related content. With years of expertise in creating informative and engaging material, he covers topics such as teaching strategies, educational technology, and learning methodologies. His work aims to inspire both educators and learners, reflecting his deep understanding of the evolving education landscape.
