A Brief on the New Tax Measures In Canada

The Canadian Finance Minister announced details of the new tax measures which include an expanded list of medical devices and prescription drugs that are free from Goods and Services Tax/ Harmonized Sales Tax. 

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The details of the new and previously announced tax measures are as follows:

  • Medical and assistive devices – Expanded list of Goods and Services Tax (GST)/Harmonized Sales Tax (HST) zero-rated medical and assistive devices.
  • Prescription drugs – Expanded list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening diseases.
  • Pharmacy Services – Professional services rendered by certain pharmacists have been exempted from GST/HST, but do not include prescription drug dispensing services that are already zero-rated under the GST/HST.
  • Medical Expense Tax Credit – the list of eligible expenses under the Medical Expense Tax Credit has been expanded.
  • Certain literacy organizations – can claim a rebate of the GST and a part of the HST for books that are distributed for free.
  • Registered Disability Savings Plan -certain family members are allowed to temporarily open a Registered Disability Savings Plan for an adult individual who may not be in a position to sign a contract.

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