Liberals plan to send $250 cheques to Canadians, temporarily cutting GST on some items

CITYnews halifax / By The Canadian Press and News Staff

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.

Restaurants Canada has praised the proposal, saying this will boost business for struggling restaurants after a tough few years and help support hospitality jobs across the country.

However, Dan Kelly, president and CEO of the Canadian Federation of Independent Business, said not all of his members will benefit and for some, it will be more of an administrative and financial burden to change their systems twice in such a short amount of time.

He also questioned the government’s commitment to affordability.

“What Canadians and Canadian small business owners really need is permanent tax reductions, not temporary ones, to reduce the cost of living,” Kelly said. “Six weeks after the tax reduction is over, the carbon tax will go up by 19 per cent.”

However, the carbon tax comes with a rebate.

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