Politics

Liberals’ promise of GST break, $250 cheques in jeopardy as opponents demand costly changes

The Liberal government’s plan to deliver on its promise of a GST holiday and $250 cheques for some Canadians is facing challenges from opposition parties demanding changes that could significantly increase the cost. Prime Minister Justin Trudeau recently announced a multi-billion dollar affordability package to help alleviate cost-of-living pressures. The package includes a proposed GST holiday on select goods and services, such as children’s toys, beer, wine, and restaurant meals, from Dec. 14 to just after Valentine’s Day. Additionally, Trudeau unveiled a plan to send $250 cheques to the 18.7 million Canadians who worked in 2023 and earned $150,000 or less.

However, the exclusion of seniors from the benefit has sparked backlash from retirees who feel abandoned by the government’s latest inflation relief measure. NDP Leader Jagmeet Singh has stated that his party will not support the bill unless the GST holiday measure is separated from the cheques. He emphasized the need to include seniors, people living with disabilities, and those who were unable to work in 2023 in the rebate program. Bloc Quebecois Leader Yves-François Blanchet also expressed the party’s refusal to support the proposal unless seniors are included in the benefit portion.

Conservative Leader Pierre Poilievre expressed the need to review the specifics of the bill before discussing it with his caucus. He highlighted the importance of prioritizing relief measures that have a significant impact on Canadians’ daily expenses. Without the support of another party, the minority Liberal government may struggle to pass the bill.

Liberal House leader Karina Gould refrained from commenting on the plan for the bill before the House, citing parliamentary privilege. She emphasized the importance of all members of Parliament supporting the legislation to provide relief to Canadians during the holidays. Liberal MP Ken McDonald and Scarborough—Guildwood MP John McKay acknowledged the need to expand the bill to include seniors but expressed their intention to vote for it to help those who are supposed to receive the benefit.

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The proposed GST holiday is estimated to cost the federal treasury $1.6 billion in foregone revenue, while the $250 cheques are expected to cost approximately $4.68 billion, according to a Finance official. The government faces challenges in balancing the cost of the relief measures while ensuring that they effectively address the financial struggles faced by Canadians. As discussions continue among party leaders, the fate of the affordability package remains uncertain.

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