OTTAWA—The Liberals are offering up a two-month GST holiday and a $250 cheque to Canadians for the holiday season.
The GST cut would be applied to children’s clothes, toys, diapers and car seats. The Christmas tree those toys would go under would also be covered by the GST cut. It would also cover beer, wine and cider and many grocery items that are currently subjected to GST, like pre-made meals and salads as well as chips and candy.
Canadians who don’t feel like cooking themselves would also be covered, because the GST will not apply to restaurant meals during the two-month period.
The GST cut would run from Dec. 14 until Feb. 15 and is estimated to cost $1.6 billion. For a family spending $2,000 over that two-month period, the government estimates a $100 savings.
Any Canadian who worked in 2023 and made less than $150,000 would also qualify for a new Working Canadians Rebate of $250, expected to be delivered in early spring. The government estimates the rebate will go to 18.7 million Canadians.
In a new release on Thursday, Prime Minister Justin Trudeau said the government is trying to give Canadians a break on the cost of living at the holidays when costs are typically highest.
“Our government can’t set prices, but we can give Canadians, and especially working Canadians, more money back in their pocket.”
The NDP has been proposing a GST cut for Canadians as well, which would cover more items and would be permanent. The party’s leader Jagmeet Singh said in a news release Wednesday night his party had pushed the Liberals into action, even if it was only partially what the NDP had proposed.
“As usual, the Liberals are letting people down with their choice to make this a short-term tax holiday, on only some items,” Singh said.
The NDP’s proposal also included cellphone and internet bills and home heating and was permanent. Singh said his party will still support the Liberals’ proposal.
“The NDP will vote for this measure because working people are desperate for relief, and we’re proud we delivered for them again. Then we will campaign hard on permanently scrapping the GST on daily essentials and monthly bills, like we already promised.”
All of these new measures will depend on the government being able to pass legislation through a stalled Parliament. The House of Commons has been ground to a halt over a privilege debate for weeks with no legislation able to advance.
The NDP are not willing to relent on the broader privilege debate, but are willing to work with the government to pass the measures.
To pass the measure, the NDP hopes to pause — but not end — the ongoing stalemate in the House of Commons by temporarily adjourning debate for a single day.
Singh plans on moving a “programming” motion, which would require the Liberals’ support to pass, that would theoretically allow for the legislation to be introduced and greenlit in one day. The New Democrats, who back the Conservatives’ parliamentary tactics, want to see debate on the privilege motion continue the next sitting day.
