As well, Canadians who earned up to $150,000 in 2023 will also receive a $250 cheque in April
Canadians can expect an early Christmas gift from the federal government this year.
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Starting Dec. 14, the government will enact a two-month exemption period on GST from groceries (prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches), sit-down and take-out restaurant meals, beer and wine, children’s clothing and toys and diapers.
As well, Canadians who earned up to $150,000 in 2023 will also receive a $250 cheque sometime in April.
“A government can’t set prices at check-out, but we can put more money in people’s pockets,” Prime Minister Justin Trudeau said at a Thursday morning press conference north of Toronto.
“It’s going to give people that relief they need, and a tax break over the next two months is going to help with the costs of everything as we approach the holidays and as we approach the new year.”
Thursday’s announcement aligns with calls being made by federal NDP Leader Jagmeet Singh, who is taking credit for the move.
“On Thursday we expect the Liberal government to announce a winter GST holiday on a number of items in response to the NDP’s demands,” Singh said in a statement issued late Wednesday.
“It’s far from the substantial and permanent relief the NDP wants to give Canadians. As usual, the Liberals are letting people down with their choice to make this a short-term tax holiday, on only some items.”
“I really hope all parties in the House can get behind this, so that we can pass this quickly, so that Canadians can get this relief as soon as Dec. 14,” Trudeau said, but that may be easier said that done.
These multibillion-dollar measures would have to be approved in the House of Commons, currently paralyzed by an ongoing opposition party-supported privilege motion over the Trudeau Liberals’ refusal to comply with a production order requiring the government to turn over thousands of documents related to the green slush fund scandal.
While the weeks-long stalemate could end if the Liberals can convince either the Bloc or NDP to support a closure motion, neither party has expressed interest in doing so.
In a statement, Restaurants Canada said they’re pleased with the announcement, calling it a big win for the industry.
“More than half (53%) of restaurant companies are operating at a loss or just breaking even, up from 12% pre-pandemic,” said Kelly Higginson, president and CEO, Restaurants Canada.
“They are seeing fewer guests and smaller cheques as a result of Canadians reducing their discretionary spending during the affordability crisis. At the same time, restaurants are still carrying heavy debt loads and all their operating costs have gone up by 20% or more.”