The Trudeau Liberal government on Thursday announced a two-month GST exemption on selected items before Christmas, attempting to provide financial relief to families struggling with rising prices.The temporary measure, developed with the NDP, would suspend federal sales tax on a range of products, including grocery items, children's clothing, diapers, car seats, and toys.Prime Minister Justin Trudeau at a press conference Thursday promised the move "will not stimulate inflation" but will "help families make ends meet.""This is something we're able to do because Canada has one of the strongest balance sheets in the world, the lowest deficit in the G7, and decreasing," said Trudeau."We have a strong fiscal position. We're putting it work for all Canadians."Finance Minister Chrystia Freeland at the press conference introduced the "two major forms of supports" the Liberals planned for Canadians. "This is about giving families a little extra help from the middle of December to the middle of February," said Freeland."We are going to have a GST holiday on all prepared foods," she said, giving the example of a rotisserie chicken. Not all foods will be without the GST. "Restaurant meals, lifting the GST," said Freeland, adding that includes beer and wine. "We're also lifting the GST on a carefully chosen basket of holiday gifts," she said, which will include diapers, toys, video games, books and winter hats and mitts.".'WE COULD SPEND EVEN MORE': Freeland defends spending amid rising deficit concerns .Freeland mentioned throughout her announcement that the Liberals "now have the budget" to make such cuts."This is about supporting the people who have been working hard to get through tough times, and the people we are counting on to power Canada's economic recovery."NDP Leader Jagmeet Singh earlier confirmed his party's support for the affordability package. "Working people are desperate for relief," Singh said in a statement."I'm glad the NDP is going to be working with us on the GST break in the next few months," said Trudeau during Thursday's announcement.He complained the Conservatives are "voting against all out affordability measures and blocking a number of these measures.".‘$1B A WEEK’: Tory senators say Freeland has 'lost control' of federal spending after $2.13 trillion debt ceiling increase.The proposed bill includes additional support mechanisms, with plans to send cheques to Canadians next spring. The Liberals are giving $250 to every Canadian who filed a tax return, worked in 2023 and made $150,000 or less.The bill aims to help families cope with ongoing economic challenges. However, it appears that the Trudeau government is trying to buy people’s votes with their own money..15% CUTS: Chamber of Commerce wants Chretien-era austerity cutbacks on federal spending.The temporary tax relief is expected to provide immediate financial breathing room for households during the holiday season.Parliamentary procedures are being adjusted to ensure the bill passes quickly..Motions are anticipated to expedite the bill and break the recent gridlock in the House of Commons.The agreement between Liberals and NDP does not signal a renewed long-term partnership between the two parties. In September, the NDP withdrew from their supply and confidence agreement with the Liberal government.The Canadian Taxpayers Federation is calling on the federal government to make its temporary GST cut permanent and provide further tax relief.“It’s good to see Canadians are finally getting some relief from this government’s high-tax burden,” said Franco Terrazzano, CTF Federal Director. “This tax cut will save Canadians money during an expensive time.“But Prime Minister Justin Trudeau needs to make this relief permanent, because if he re-imposes sales taxes on diapers and rotisserie chickens after the holidays, it will be unacceptable to taxpayers.”The GST cut will save taxpayers an estimated $1.6 billion over two months, according to the government. “The tax relief is helpful now, but do politicians really think taxpayers will be able to afford to pay more for all of these essentials on Feb. 16?” Terrazzano said. “Ottawa made life more unaffordable by hiking carbon taxes, payroll taxes, alcohol taxes and capital gains taxes, so the government needs to go beyond a temporary tax cut to undo the damage it has done.“After raising taxes on everything all the time, temporary relief won’t cut it.”
