Prime Minister Justin Trudeau goes to question period in the House of Commons, in Ottawa, on November 20, 2024. Trudeau is expected to announce a temporary GST holiday on certain essential items on Thursday. (THE CANADIAN PRESS/Adrian Wyld)

By Canadian Press

Politics

Liberals to offer GST break on toys, restaurants, but need help to pass it

Nov 21, 2024 | 10:26 AM

The federal Liberals are seeking to temporarily take the federal sales tax off a slew of items just in time for Christmas.

A senior government official who was not authorized to speak publicly about the announcement says the move would affect a number of items including toys, diapers, restaurant meals and beer and wine.

A last-minute cabinet meeting is underway virtually this morning to discuss the proposal, and Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland are set to announce the details later this morning in Toronto.

The promise will be a key part of the government’s fall economic statement and if the Liberals can get the support of at least one other party in time, it will last from Dec. 15 until Feb. 15.

The move comes as an inflation-driven affordability crunch has left voters unhappy with the Liberal government, and a week after the NDP made a promise it would issue a permanent GST break for essential items if the party wins the next election.

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It also comes as the government has been unable to move anything along in the House of Commons since late September as the Conservatives filibuster proceedings, demanding documents from the government or a pledge from the NDP to join them to defeat the Liberals and force an election.

Singh is taking credit for forcing the Liberals to take today’s action, saying in a statement that the NDP won a “tax holiday” for Canadians.

“The Prime Minister’s Office just informed us that he’s caving to our Tax-Free-Essentials campaign — partly,” Singh said in the statement.

Singh’s proposal was to permanently remove the GST from essentials including diapers, prepared meals, cellphone and internet bills. That was expected to cost $5 billion, but he was also urging provincial governments to match the plan with cuts to provincial sales taxes.

The Liberals will need the NDP’s help to pass the tax change which the official said will be included in the fall economic statement.

The House of Commons has been embroiled in a stalemate for nearly two months as the Conservatives filibuster, demanding that the government release unredacted documents on alleged misspending at a green tech fund.

It means no legislation has been debated or voted on for more than eight weeks.

To introduce and debate the fall economic statement, the government would first need the NDP or Bloc Québécois to support it in moving a motion to end that filibuster.

Only then could the fall economic statement be debated and voted on in the House of Commons.