The Conservatives are proposing to scrap the federal goods and services tax for retailers for the month of December to help Canadians save money and spur business activity.

Leader Erin O'Toole announced the policy this week as part of the party's election platform.

Under the plan, the GST would not be charged for the final month of the year for in-store retail.

O'Toole said it would help Canadians who've been struggling to make ends meet during the pandemic, while also supporting businesses by encouraging spending.

The campaign said the tax holiday would not apply to online purchases.

A GST holiday would represent a five per cent savings on many purchases across the country.