Canadians have a LOT to say about the GST tax break, and it’s not all good things

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The Liberal government’s two-month GST holiday bill passed in the House of Commons on Thursday night, and Canadians have a lot to say about the temporary relief measure.

Bill C-78, known as the Tax Break For All Canadians Act, will make certain items tax-free between December 14, 2024 and February 15, 2025.

Prime Minister Justin Trudeau announced the measure last week, noting that Canadians will get a “break on everything they do.”

The legislation passed 176 to 151, with the Liberals and NDP supporting it and the Conservatives and Bloc Quebecois voting against it.

Conservative Leader Pierre Poilievre previously stated that Trudeau’s measure was a “two-month, temporary tax trick.”

In a post on X following the House of Commons vote, Trudeau stated that Poilievre and his party had voted against giving Canadians a tax break.

Singh also posted, stating that the Conservatives “tried to block” the tax break.

“For the record, an NDP [government] would make this a permanent tax cut and include monthly bills like home heating and your cell phone bill,” he added, reiterating his party’s promise that was made before Trudeau introduced his tax relief measure.

Canadians react to GST relief

Many Canadian social media users were quick to react, and some weren’t too happy with the temporary tax relief.

“It’s a stupid, temporary gimmick that not only won’t save your political skin, but won’t save Canadians any money once the messy administration of this foolishness is sorted out,” said one X user in response to Trudeau’s post.

One person called it “superficial aid,” and another X-user added it was a “silly vote-buying stunt.”

“[Poilievre] doesn’t want unnecessary inflation, neither do I,” stated one commenter.

Another X user said that while they disagreed with the Liberals’ approach to the tax break, they felt the Conservatives just wanted to be “mad [and] not part of the solution.”

“Pierre will tell you he’s for the working class and then vote against working-class tax relief,” wrote another person.

Others questioned why Poilievre was going against his “axe the tax” slogan.

What about the $250 rebate?

While the GST holiday bill was passed, it did not include Trudeau’s proposal to provide a $250 rebate cheque to some Canadians.

During Trudeau’s initial announcement, he said Canadians who worked in 2023 and earned up to $150,000 would receive a $250 cheque.

However, that was omitted from the bill after NDP Leader Jagmeet Singh said he wouldn’t support it unless the GST holiday and the cheques were split into two pieces of legislation.

Singh took issue with the $250 cheques because the measure did not include payments to seniors, people living with disabilities, and people who were unable to work.

For now, Canadians will likely see the GST relief come into effect once it passes through the Senate.

Some of the highlights from the list of products eligible for the tax exemption include groceries, beer and wine, restaurant meals (dine-in, take-out, or delivery), essential childcare items, and even Christmas trees. You can view the full list here.

While Trudeau said the relief will help Canadians during the costly holiday season, many small businesses aren’t looking forward to the changes.

According to a survey of more than 3,500 small firms conducted by the Canadian Federation of Independent Business (CFIB), many are concerned about how it will increase their costs and the short timeframe they have to prepare for implementing the change.

With files from Isabelle Docto

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