Thursday, November 28, 2024

Liberal GST holiday expected to pass soon as government introduces solo bill

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OTTAWA — The Liberal government introduced a stand-alone bill to implement its proposed GST holiday Wednesday, hours after the NDP threatened it would not pass the legislation if it was linked to a $250 rebate for working Canadians.

The bill would give people a two-month GST exemption on items like premade food at grocery stores, children’s clothes, toys, some alcoholic beverages and other holiday season staples.

The Liberals announced the tax break last week at the same time as they pledged to send $250 benefit cheques for people who earned a working income up to $150,000 last year.

Speaking on background, a finance ministry official said that legislation on the GST moved first because of a “real time crunch” compared to the rebate. The GST holiday is expected to begin Dec. 14 and last until mid-February, while the benefit payments are not expected until early spring.

“People are desperate for relief, and the NDP has won a little help for them,” NDP Leader Jagmeet Singh said in a statement on Wednesday evening.

He added that his party would go further.

“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.”

Over the last several days it became clear the Liberals would not have the necessary support in the House of Commons to pass both measures.

Singh said Wednesday his party would only support legislation to implement the GST break, and said the benefit plan needs to be fixed to include fully retired seniors and people who rely on disability benefits.

The Bloc Québécois is also calling on the government to expand the benefit payments to more seniors.

The Liberals need support from at least one opposition party to pass the bill to implement the GST break, which is now expected to come to a vote on Thursday.

The NDP introduced a motion to pause the ongoing privilege debate in order to get the bill introduced, debated and passed with extended sitting days Wednesday and Thursday.

The House has been mired in a debate since late September, due to an ongoing filibuster by the Opposition Conservatives.

The Tories are demanding the government turn over unredacted documents to the RCMP about misspending at a green technology fund.

The Conservatives insist that debate will continue until the documents are given to the RCMP or the NDP join them and the Bloc Québécois to vote non-confidence in the minority government.

Prime Minister Justin Trudeau said last week that both the GST holiday and the $250 cheques are aimed at helping people struggling with the cost of living.

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