The Liberal government has introduced a bill that would bring in a promised GST holiday starting next month — but it doesn’t include the government’s proposal to send $250 rebate cheques to certain Canadians.
The omission of the promised rebate from Bill C-78, tabled Wednesday afternoon, appears to be an attempt by the Liberals to salvage the time-sensitive tax break without addressing calls to expand eligibility for the rebate cheques just yet.
That omission almost certainly guarantees the bill will pass the House before the holiday shopping season kicks into high gear.
Last week, Prime Minister Justin Trudeau announced a multi-billion-dollar affordability package aimed at alleviating cost-of-living pressures. The first element is a proposed GST holiday on some goods and services — including children’s toys, beer and wine and restaurant meals — from Dec. 14 until just after Valentine’s Day.
Trudeau also announced the Working Canadians Rebate, a plan to send $250 cheques to the 18.7 million people in Canada who worked in 2023 and earned $150,000 or less
That has angered some retirees who say they feel abandoned by the government’s latest inflation relief measure.
After first pledging support for the bill, NDP Leader Jagmeet Singh, who ended his party’s governance agreement with the Liberals earlier this fall, promised to withhold support if the government didn’t split the promises into two pieces of legislation.
NDP Leader Jagmeet Singh laid out an ultimatum to Prime Minister Justin Trudeau on the Liberals’ affordability measures. The NDP wants the GST break passed separately right away and is calling on the Liberals to expand eligibility for rebate cheques in the new year to include more seniors and people living with disabilities.
In a statement issued after the bill’s tabling, Singh said the NDP will now make sure the GST bill passes the otherwise gridlocked House of Commons by Thursday night.
“This is not enough — the NDP will permanently take the tax off daily essentials and monthly bills if we win the election, including bills like internet, cellphone and home heating,” he wrote.
“The NDP also supports providing people with $250 cheques, which we will pass at a later date if the Liberals agree to include the most vulnerable people who need it, including seniors, people with disabilities and injured workers. The ball’s in your court, Justin Trudeau.”
The Liberals didn’t appear to have another partner in the House who would back both the GST holiday and the Working Canadians Rebate as-is.
Bloc Quebecois Leader Yves-François Blanchet also said this week his party will not support the proposal unless the benefit portion is expanded to include seniors.
Conservative Leader Pierre Poilievre has said he wanted to see the specifics of the bill and would discuss it with his caucus Wednesday.
“Our priority is not to save you 10 cents on a bag of potato chips right before quadrupling the carbon tax on your heat, housing, gas and groceries,” he said on Tuesday.
The federal government will implement a two-month GST break on a list of goods, from restaurant meals to diapers. Andrew Chang explains how much you’re likely to save, depending on where you live, and why there could be some unintended consequences.
The House has been unable to move forward with regular business for weeks as opposition MPs have pushed the Liberal government to release documents related to a now-defunct foundation responsible for doling out hundreds of millions of federal dollars for green technology projects.
Because the matter is considered a question of privilege, it takes precedence over all other House business.
NDP House leader Peter Julian signalled earlier in the day that as long as the Liberals heed the NDP’s demands, his party would take the procedural steps needed to “open those gates” and move the GST bill through the House of Commons.
Government has to draw the line: Liberal MP
Liberal MP Ken McDonald, who represents the Newfoundland and Labrador riding of Avalon, said he agrees the bill should be expanded but he’ll still vote for it.
“We’re missing a group that really could use help and that’s those seniors,” he said before caucus on Wednesday.
“The other side of it is, if you vote against it, you’re hurting everybody else that’s supposed to receive it.”
Scarborough—Guildwood Liberal MP John McKay called the bill a “good faith attempt” and said the government has to draw a line when doling out billions of dollars.
“If you can design the policy, I’m interested in talking to you,” he said.
“Every policy that’s designed by any government is going to be imperfect. That’s the nature of the beast.”
The tax holiday would cost the federal treasury an estimated $1.6 billion in foregone revenue. As is, the $250 cheques will cost about $4.68 billion, a Finance official told CBC News.