Liberals, NDP expected to pass GST holiday in House of Commons today
The NDP wants that benefit expanded to also go to non-working seniors and people with disabilities who don’t have a working income.
Legislation to implement a two-month-long GST holiday is set to pass today.
The bill, introduced on behalf of Finance Minister Chrystia Freeland, was brought forward in the House of Commons on Wednesday afternoon with assistance from the NDP to temporarily halt a Conservative filibuster.
The NDP agreed to support the legislation only after Freeland separated the GST holiday from a proposed $250 payment planned for most working Canadians in the spring. The NDP is advocating for this benefit to also include non-working seniors and individuals with disabilities who lack employment income.
During the debate on Wednesday evening, Ryan Turnbull, Freeland’s parliamentary secretary, explained the intent of the measure: “The goal is to help Canadians after multiple budget shocks from high inflation following COVID-19 and supply chain disruptions linked to climate disasters.”
The GST holiday will apply to a variety of items commonly purchased during the holiday season, such as children’s clothing and toys, video games and consoles, Christmas trees, restaurant and catered meals, wine, beer, candy, and snacks.
The government estimates that Canadians spending $2,000 on these items during the two-month period could save between $100 and $260, depending on their province. Savings will vary due to the harmonized sales tax (HST) in some provinces. In the four Atlantic provinces and Ontario, where the HST includes both federal and provincial portions (15% in the Atlantic and 13% in Ontario), the full tax will be waived. In other provinces, only the 5% federal GST will be lifted unless their governments choose to suspend provincial sales taxes as well.
The federal move, which is expected to cost about $1.6 billion, does not include compensation for provinces to offset their revenue losses. Ontario projects it will lose approximately $1 billion in provincial revenue due to the measure, although several items covered by the federal holiday are already permanently exempt from Ontario’s portion of the HST. Alberta, which does not have a provincial sales tax, will see savings of 5%.
Conservative finance critic Jasraj Singh Hallan criticized the GST holiday during Wednesday’s debate, calling it “nothing but a cheap gimmick and a tactic to buy votes from Canadians.”
NDP Leader Jagmeet Singh emphasized the importance of passing the bill, stating, “New Democrats won’t let [Conservative Leader] Pierre Poilievre win the fight,” even though Poilievre opposes the measure. Singh also called for the GST to be permanently removed from daily essentials and monthly internet, phone, and home heating bills.
The Liberals required the NDP's support to suspend debate on a Conservative motion that has stalled the House of Commons for nearly two months. The Conservatives have been demanding unredacted documents related to allegations of mismanagement in a now-defunct federal green technology fund before ending their opposition.
This GST holiday bill marks the first piece of new legislation debated in the House since late September.
