Trudeau government to announce GST vacation on certain items before Christmas
The Liberal government and the NDP have come to an agreement to implement a two-month GST holiday on specific items before the holiday season in an effort to alleviate the financial burden faced by families due to increasing prices. This decision is part of a comprehensive multi-billion-dollar relief package that the federal government plans to introduce. Additionally, Ottawa intends to distribute checks to certain Canadians in the spring as part of this initiative.
According to sources, the temporary GST relief is expected to be announced by the federal government on Thursday and will come into effect before Christmas. The list of items that will be targeted includes various grocery products such as beer, wine, and prepared hot meals that are subject to federal tax. Furthermore, the GST on items like diapers, children’s clothing and shoes, children’s car seats, and toys will also be temporarily suspended.
In a move to support these affordability measures, the NDP has agreed to back a single bill in the House of Commons that encompasses both the GST relief and the distribution of individual checks to eligible Canadians. NDP leader Jagmeet Singh expressed the party’s support for the government’s proposal, highlighting the importance of providing relief to working individuals during these challenging times.
It is expected that motions will accompany the bill to facilitate its swift passage and to address the ongoing gridlock in Parliament that has persisted for weeks. The parties have been engaged in a privilege debate since late September, stemming from a House order related to unredacted documents of a defunct foundation responsible for allocating federal funds for green technology projects.
While this temporary agreement between the Liberal government and the NDP signifies a step towards addressing the cost of living concerns, it does not guarantee the NDP’s support for the Liberal’s fall economic statement. The NDP has emphasized that they have additional demands that need to be met before extending their support.
Prime Minister Justin Trudeau is hopeful that these measures will help shift the focus back to addressing the cost of living and potentially improve the party’s standing in the polls. The government has faced challenges in Parliament, with Employment Minister Randy Boissonnault resigning from cabinet amidst controversies surrounding his business dealings and claims about his Indigenous family history.
Looking ahead, the NDP has promised to take further steps to enhance Canadians’ purchasing power if elected. Singh has pledged to permanently eliminate the GST on essential items like grocery store meals, internet and cell phone bills, diapers, children’s clothing, and home heating. This proposal, estimated to cost the government $5 billion in tax revenues annually, would be offset by a tax on excessive corporate profits.
In conclusion, the temporary GST holiday and the distribution of individual checks represent a collaborative effort between the Liberal government and the NDP to provide relief to Canadians facing financial challenges. While this is a positive step, both parties acknowledge the need for additional measures to address the cost of living concerns and ensure long-term financial stability for Canadians.
