Liberals to offer GST break on toys, restaurant meals but need help ...

Posted November 21, 2024 8:24 am.

Last Updated November 21, 2024 2:09 pm.

Prime Minister Justin Trudeau says his government plans to temporarily lift the federal sales tax off a slew of items just in time for Christmas and send cheques to millions of Canadians this spring.

Trudeau announced the proposed affordability measures in Toronto alongside Finance Minister Chrystia Freeland on Thursday morning, ahead of the government’s fall economic statement.

“The government can’t set prices at the checkout, but we can put more money in people’s pockets,” Trudeau said. “We know people are under pressure, this is there to help them.”

The GST break, which would begin Dec. 14 and end Feb. 15, applies to a number of items:

Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches Restaurant meals, whether dine-in, takeout, or delivery Snacks, including chips, candy, and granola bars Beer, wine, cider, and pre-mixed alcoholic beverages below 7 per cent ABV Children’s clothing and footwear, car seats, and diapers Children’s toys, such as board games, dolls, and video game consoles Books, print newspapers, and puzzles for all ages Christmas trees

Canadians who worked in 2023 and earned $150,000 or less would also receive a $250 cheque in the spring.

About 18.7 million people will receive the cheques, costing the government about $4.7 billion, while the GST break is expected to cost another $1.6 billion.

In order to get the measures passed through Parliament, the Liberals will need the support of an opposition party — and the NDP appears poised to do just that, taking credit for forcing the government to adopt its idea. However, NDP Leader Jagmeet Singh insisted Thursday there was no negotiation between the parties.

Last week, the NDP promised it would issue a permanent GST break for essential items if it wins the next election, and late Wednesday Singh said in a statement that his party won a “tax holiday” for Canadians.

The measures come as an inflation-driven affordability crunch has left voters unhappy with the Liberal government.

Conservative Leader Pierre Poilievre blasted the Liberals and NDP, calling the GST break a “trick.”

“Today, what we have is a two-month temporary tax trick that will not make up for the permanent quadrupling of the carbon tax on heat, housing, food and fuel,” Poilievre said.

The affordability measures require legislative measures, however, the House of Commons is currently in a stalemate over a privilege debate.

The NDP said it will not end the privilege debate, but a party spokesperson said it will use a procedural measure to adjourn that debate for one day at a time to allow the tax measures to pass.

With files from Cormac Mac Sweeney, 680 NewsRadio Parliament Hill reporter