NDP props up Trudeau gov’t, passes GST relief
Canada’s ‘GST holiday’ will save the average household just $4.51 in taxes over the next two months, according to one expert, and wreak havoc for small businesses.
New Democrats are propping up the Trudeau government once again, despite NDP Leader Jagmeet Singh ending the party's supply-and-confidence agreement with the Liberals three months ago. The parties passed a two-month tax break late Thursday night in a 176-151 vote.
Last week, Prime Minister Justin Trudeau proposed a “GST holiday” on essentials starting December 14, as well as a $250 rebate for working Canadians earning up to $150,000.
“Everyone has had to tighten their belts a little bit, and now, we’re going to give a tax break to all Canadians,” he told reporters November 21.
Cabinet estimated the GST relief at $1.6 billion, Blacklock’s learned, while the Department of Finance said the rebate would cost taxpayers $4.7 billion.
Bill C-78, An Act Respecting Temporary Cost Of Living Relief, will suspend GST charges on itemized goods, like beer and Bibles, should it pass the Senate in the coming weeks. It will last through February 15, 2025.
“There is a time constraint with regards to the GST,” said Government House Leader Gould. “We want to get this in place for December 14 so we’re getting it through the House of Commons now so it can go through the Senate in time to be put in place.”
NDP MP Leah Gazan defended the tax relief which experts have called a “token gesture.”
“Can you explain why a half measure is good enough for you?” asked a reporter. “The NDP is not going to vote against providing people with assistance right now during an affordability crisis,” replied Gazan.
The NDP leader, however, expressed skepticism with other proposed relief measures not included in C-78, including $250 cheques to millions of tax filers.
“We were told it would be anyone earning less than $150,000 who would get this,” Singh told reporters Monday. It excludes seniors, people living with disabilities and students, he later learned. “That is wrong,” said Singh. “The Liberals need to fix this.”
Meanwhile, Conservatives condemned Trudeau’s “GST holiday” amid calls for more meaningful relief. A $250 rebate cheque won’t cut it either, said Pierre Poilievre, the Tory leader.
“Remember they said the carbon tax would make you better off, but here we are with the ‘food professor’ showing that food prices have risen 37% faster in Canada,” Poilievre said at a separate November 21 press conference.
Dr. Sylvain Charlebois, the “Food Professor,” called it a “token gesture.” In commentary to the Toronto Sun, he claimed the average Canadian household would save just $4.51 in GST over the next two months.
Dan Kelly, president of the Canadian Federation of Independent Business, said small businesses aren't keen on the announcement, citing that it wreaks havoc on their holiday sales.
Alex Dhaliwal
Calgary Based Journalist
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
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COMMENTS
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Bruce Atchison commented 2024-11-29 19:14:38 -0500 FlagPoilievre is right. It’s a tax trick and we Canadians recognize it for what it is. Trudeau is bribing us with our own money but we know he’s full of it. Axe that tax and we all will be much better off. Inflation will drop into negative numbers and everybody will be the richer.
