The Liberal government and the NDP have agreed to implement a temporary two-month GST exemption on select items before the holiday season, according to Radio-Canada. The measure, part of a multi-billion-dollar plan to help families cope with rising costs, includes cheques for some Canadians in the spring.
The temporary GST relief, set to be announced Thursday, will cover items like certain grocery products (e.g., beer, wine, and prepared hot meals), diapers, children’s clothing, shoes, car seats, and toys. Cheques of $250 will also be sent in spring 2024 to individuals earning less than $150,000 annually.
This proposal will be part of a single bill that the NDP has pledged to support, with additional motions expected to ensure quick passage and break the ongoing gridlock in the House of Commons. The parliamentary impasse, stemming from a document dispute, has stalled proceedings for nearly two months.
NDP Leader Jagmeet Singh confirmed his party’s support, citing the urgency of providing relief to working families. However, Singh emphasized that the NDP remains committed to broader affordability measures, including permanently eliminating the GST on essentials like groceries, heating, internet bills, and children’s items.
Prime Minister Justin Trudeau aims to refocus on affordability amid declining poll numbers and internal challenges, including a recent cabinet resignation. While this temporary GST holiday signals progress, it does not guarantee NDP support for the Liberals’ upcoming fall economic statement, which could trigger a confidence vote if it includes new spending.
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PRESS UPDATE