Prime Minister Justin Trudeau said Thursday that Canadians will soon receive temporary tax breaks and a one-time $250 rebate on essential goods, children’s clothing and diapers, restaurant and prepared meals, and common stocking stuffers. Announced.
The two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) moratorium will apply nationwide and is aimed at addressing lingering affordability concerns, the federal government said.
“Canadians have been through a lot. They’re working hard. We’re seeing it. We’ve been able to get through the last few years. Everyone is doing their part a little bit.” We had to tighten our belts. Now we’ll be able to give ‘tax relief to all Canadians,'” Trudeau said.
Among the dozens of consumer goods for which the government will provide relief between December 14 and February 15 are:
- Cooked salads, sandwiches, and similar ready-made platters
- Restaurant dining, takeout, and delivery
- Cakes, pies, donuts, brownies and other pastry products
- Beer, wine, cider, coolers, and certain non-alcoholic beverages
- Candies, chocolates, gum and related sweets
- Chips, cheese puffs, popcorn, and similar salty snacks
- Ice cream, other frozen foods, puddings
- fruit bars and granola products
- dollhouse, toy car, lego, action figure
- Children’s clothing, shoes, child seats, diapers
- Video games, consoles, and controllers
- Jigsaw puzzles and board or card games for all ages
- Print the newspaper and choose the book type
- Christmas tree natural or artificial
“Currently, some foods are not subject to GST, but some prepared foods are subject to GST, such as rotisserie chicken,” Deputy Prime Minister and Finance Minister Chrystia Freeland said on Thursday. stated in the announcement. “If you’ve had a really busy day and you need to feed your kids at the end of the day, it can be tempting to go to the grocery store and buy a pre-cooked meal, but it’s expensive.”
The prime minister also announced a new “Working Canadians Rebate” at a presentation Thursday in Sharon, Ont.
Policy that emphasizes notebooks The announcement was first reported by the Globe and Mail.
Who is eligible? How does it work?
From December 14th to February 15th, businesses are expected to remove GST and HST on eligible products at checkout. GST harmonized with provincial sales tax The HST applies only to certain provinces, including Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island.
The federal government says the tax cuts will cost $1.6 billion and will save people $2,000 on eligible $100 items over two months. The savings are even greater in states with HST.
The Working Canadians Rebate will provide $250 in early spring 2025 to 18.7 million Canadians with annual incomes of $150,000 or less who file their 2023 tax returns by the end of this year. Prime Minister Trudeau said the government intends to introduce these “relief” checks in April.
Asked by reporters why the $150,000 income threshold was chosen for the rebate, Prime Minister Trudeau acknowledged that it “raised costs for everyone.”
Prime Minister Trudeau had previously expressed opposition to the idea of providing rebates to improve affordability, saying they could lead to higher prices.
in May interview“One of the fundamental challenges with affordability is that they want to say, ‘Well, guess what?'” Trudeau said. We just need more money. Can you send me more benefits, or can you send me an extra thousand dollars a month?’ As soon as you do that, inflation goes up by exactly that amount. ”
Now, Prime Minister Trudeau insists Canada’s economic situation is different, as “inflation is down” and the Bank of Canada continues to cut interest rates.
“We can make sure we get money into people’s pockets in a way that helps them make ends meet and continues economic growth, rather than fueling inflation,” Trudeau said.
The Canada Revenue Agency will deliver your rebate directly to you via direct deposit or check.
NDP insists on deduction, plans to ‘support’ tax cuts
Last week, NDP Leader Jagmeet Singh promised to eliminate GST on household items and monthly bills if elected.
The Liberals’ proposed temporary GST relief would not apply to monthly bills.
On Thursday, Singh said the party “fought for this” but also called it “a Liberal disappointment” for not including a monthly bill.
Singh also said the NDP will vote in favor of the measure.
“Of course we’re going to support people taking vacations,” Singh said. “This is not the way we wanted to do it, but it’s absolutely necessary to give people a break.”
The proposed tax cuts require legislation, meaning the Liberals will need support from other parties to break the current two-month logjam in the House of Commons.
The impasse is over the government’s refusal to hand over documents related to the now-defunct Green Tech Fund. No legislation can pass until debate on this issue is concluded and a second standing privilege motion regarding Randy Boissonneau’s former business partner is dealt with.
The NDP says after weighing its options on whether to support the Liberals to break the deadlock in the House, the party’s plan is not meant to end the situation, but rather found a workaround.
“We want this relief to take place as soon as possible,” Singh said. “That’s why we stand ready to suspend the privileges motion being considered in the House for one day, pass this bill in one day, and ensure that working families receive this relief as soon as possible.”
Since Mr. Singh abandoned the supply and confidence agreement between the two parties in September, the NDP has been voting on a vote-by-vote basis to help preserve the minority government; It is the only political party that is positive about this. The Conservative Party and the Bloc Quebecois are ready to call early elections.
“I hope all parties in the House of Commons support this bill and pass it quickly so that Canadians can receive this relief as early as December 14,” Prime Minister Trudeau said.
Block leader Yves-François Blanchet said Thursday that while there were still questions about how this would go, it was “unwise” to say he was opposed to the idea of people ultimately putting more money in their pockets. ” he said.
“But I clearly disagree with the idea of a prime minister saying, ‘I’m going to give you money to get people to consider voting for me.’ That goes against the very principles and ethics of work,” he said. Ta.
Conservatives call bailout ‘temporary tax trick’
Conservative Party Leader Pierre Poièvre told reporters Thursday that he called the proposed tax cuts “an interim two-month tax relief package.”
“What we have is a two-month temporary tax trick that cannot be covered by a permanent quadruple carbon tax on heat, housing, food and fuel,” Poilievre said. Ta.
Asked whether his party would vote against the measure, Poilievre did not directly answer.
“I don’t vote for press releases or press conferences,” Poièvre said.
Prime Minister Trudeau said earlier that he “really” hopes all parties in the House of Commons will support the measure, adding, “It passes quickly so Canadians can receive this relief as early as Dec. 14. I will do so.”
‘There’s some vulnerability,’ pollsters say
The cost of living remains a top issue for voters, and Abacus Data CEO David Collett says if Canadians feel the Liberal Party is responding to their needs, they’ll be able to get some political support here. It is stated that there is a possibility of obtaining significant benefits.
“I think this announcement will be pretty well known in households. I think it’s something that people will be talking about. So I think that alone is a victory for the Liberal Party,” Colette said. “I think it remains to be seen whether the public believes this is enough, whether it’s enough, whether it’s helpful.”
Collette also pointed out that because the measures are time-limited, there are risks and “some vulnerabilities” politically if the policy is reversed.
“The big question for me is, do they have the guts to put this HST and GST back on all the products that they removed?” [from] Given the rise in carbon prices in just a few months, this may not come back to these products,” Collett said.
“Especially when we’re talking about having an election in the spring here in the city of Ottawa, there’s probably going to be pressure on them to keep this policy, and this policy is probably going to take precedence over policy.” said Colette.
With files from CTV News Chief Political Correspondent Vassie Kapelos and Jeremy Sharon
