Liberals table a GST holiday bill with no mention of $250 rebate cheques

The federal government has introduced a bill proposing a temporary GST holiday beginning next month, but it does not include the previously announced plan to issue $250 rebate cheques to select Canadians.

The exclusion of rebate cheques from Bill C-78, tabled on Wednesday, appears to reflect a strategy by the government to advance the GST holiday before addressing demands to broaden eligibility for the rebates. The move is expected to ensure the bill's passage through the House of Commons before the holiday shopping season intensifies.

Last week, Prime Minister Justin Trudeau unveiled a multi-billion-dollar affordability package designed to address rising living costs. One component is a GST holiday on specific goods and services—such as children’s toys, beer, wine, and restaurant meals—from December 14 through mid-February. Additionally, the Prime Minister announced the "Working Canadians Rebate," a plan to send $250 cheques to 18.7 million people earning $150,000 or less in 2023.

The rebate proposal has sparked criticism from some retirees who feel excluded from this inflation relief measure.

NDP Leader Jagmeet Singh, who ended his party’s governance agreement with the Liberals earlier this year, initially pledged to support the bill. However, Singh later demanded that the government separate the GST holiday and rebate cheque proposals into two pieces of legislation. He stated his party would only support the GST bill if the rebate cheques were expanded to include seniors, individuals with disabilities, and other vulnerable groups.

In a statement after the bill's introduction, Singh confirmed that the NDP would ensure the GST holiday bill clears the House of Commons by Thursday night. He reiterated his party's position on broader rebate eligibility, stating, “The ball’s in your court, Justin Trudeau.” Singh also pledged that, if elected, the NDP would work to permanently remove taxes on daily essentials like internet, cellphone, and home heating bills.

Other political parties have also expressed reservations about the bill in its current form. Bloc Québécois Leader Yves-François Blanchet has stated that his party will not support the proposal unless the rebate includes seniors. Conservative Leader Pierre Poilievre, while critical of the government’s broader tax policies, said his caucus would review the bill’s specifics before making a decision.

Meanwhile, Liberal MPs have expressed mixed views. MP Ken McDonald acknowledged that the rebate should include seniors but stressed the importance of passing the bill to benefit other eligible recipients. MP John McKay described the GST holiday as a “good faith attempt” and noted that designing perfect policies is inherently challenging.

The GST holiday is estimated to cost the federal treasury $1.6 billion in lost revenue, while the $250 cheques would require approximately $4.68 billion. The House of Commons has faced procedural gridlock in recent weeks as opposition parties have demanded transparency on unrelated federal funding issues. However, NDP House Leader Peter Julian signaled that his party would take the necessary steps to expedite the GST holiday bill if their demands were met.

This measure, while welcomed by some, has drawn attention to the complexities of addressing affordability concerns and balancing public funds effectively.