Canada Announces Indirect Tax Relief for Businesses Affected by U.S. Tariffs

In response to the growing economic pressure caused by new U.S. tariffs, the Canadian government has announced a series of fiscal support measures aimed at easing the burden on businesses. On 21 March 2025, Prime Minister Mark Carney introduced a comprehensive package that includes indirect tax relief at both federal and provincial levels, offering much-needed breathing room for Canadian businesses in the months ahead. 

The Canada Revenue Agency (CRA) is offering an automatic deferral of GST/HST payments due between 2 April and 30 June 2025. 

• No application or documentation required – the deferral is automatically granted 

• No interest will be charged on payments made during the deferral period 

• Standard interest rates resume from 1 July 2025 

• Businesses must still file returns on time, even if the payment is deferred 

Provincial tax relief measures 

Several provinces have followed suit, aligning their indirect tax rules with the federal relief or providing province-specific deferrals: 

• Quebec (4 April 2025): 

• • The Quebec government confirmed it will align with the CRA for the QST (Quebec Sales Tax), providing the same relief conditions as the federal deferral. Businesses will receive the same automatic deferral and interest-free terms for QST payments due during the relief period. 

• Manitoba (10 March 2025): 

• • A penalty- and interest-free deferral on Retail Sales Tax (RST) payments is available until 20 June 2025.  

• • Applies to monthly and quarterly filers, including the March 2025 return due on 22 April 2025. 

• Ontario (7 April 2025): 

• • Ontario businesses may defer remittances of provincially administered taxes from 1 April to 1 October 2025. 

• • This covers a broad range of provincial taxes (specifics to be confirmed), giving businesses extended time to manage obligations without penalties. 

This applies broadly to taxes administered at the provincial level (details to be confirmed based on specific taxes covered). 

The Canada indirect tax relief 2025 measures reflect a coordinated effort between federal and provincial governments to help businesses stay afloat during a period of economic uncertainty. By deferring tax payments without added administrative burdens or penalties, these temporary measures offer valuable support – especially for cash-strapped businesses facing international trade disruptions. Companies should stay up to date with evolving provincial announcements and ensure tax filings remain on schedule to fully benefit from the available relief. 

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