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.
NDP Leader Jagmeet Singh, who ended his governance agreement with the Liberal government earlier this fall, has said he supports the GST holiday but won’t support legislation that omits seniors from the $250 rebate program.
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 announced this week his party won’t support it unless the cheques are also sent to retirees and people with disabilities who aren’t working.
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.
“We’re saying let’s get the GST holiday done and people need relief right now. If the Liberals don’t do this, they’re jeopardizing it,” he said earlier Wednesday.
“We have cleared the path. The steps are in place now to pass the GST holiday right away. Do that and then fix the cheques.”
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.
The NDP says it’s ‘cruel’ for the federal government to exclude retired seniors and people living with disabilities from receiving the planned $250 rebate cheques. The Liberals are defending the eligibility requirements.
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.
Without another party’s support, the minority Liberal government won’t have enough votes to pass the bill.
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.
On Wednesday, NDP House leader Peter Julian said if the Liberals heed the NDP’s calls, they will “open those gates.”
“We expect the government to do what we’ve demanded because if they don’t do that, when we get through the presentation of the bill today, those gates won’t be open,” he said.
“It’s very simple.”
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.