Trudeau to announce temporary GST relief on select items heading into holidays

Canadians will soon receive a temporary tax break on essential items, children’s clothing and diapers, restaurant and pre-prepared meals and common stocking stuffers, Prime Minister Justin Trudeau announced Thursday.

The two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break will apply across the country, and is aimed at addressing lingering affordability concerns, according to the federal government.

Among the dozens of consumer goods the government’s offering relief ON between Dec.14 and Feb. 15 are:

The prime minister also announced a new “Working Canadians Rebate,” alongside Deputy Prime Minister and Finance Minister Chrystia Freeland, in Toronto.  

The pocketbook-focused policy announcement was first reported by The Globe and Mail.

As of Dec. 14, businesses are expected to remove the GST and the HST on qualifying goods at checkout. The HST is only charged in select provinces, including Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island.

According to the federal government, the tax relief will cost $1.6 billion, and save a family spending $2,000 on qualifying goods $100 over the two-month period.

The “Working Canadians Rebate” will send a $250 payment to 18.7 million Canadians in early spring 2025. Those who are eligible include all Canadians who worked in 2023 and earned up to $150,000 after taxes.

The Canada Revenue Agency will deliver the rebates directly, either through direct deposit or cheque.

Last week, NDP Leader Jagmeet Singh pledged his party would eliminate the GST on daily essentials and monthly bills, if elected.

The temporary GST relief the Liberals are offering will not apply to monthly bills.

Late Wednesday, after being briefed on the upcoming announcement, the NDP issued a statement, taking credit for the policy.

“The NDP is delivering a winter tax holiday to Canadians. The prime minister’s office just informed us that he’s caving to our Tax-Free-Essentials campaign — partly,” Singh said.

The statement also signalled the NDP “will vote for this measure because working people are desperate for relief, and we’re proud we delivered for them again.”

Singh is expected to react to Trudeau’s announcement, on Parliament Hill at 12:30 p.m. EST. Conservative Leader Pierre Poilievre has also called a press conference, for 12 p.m. EST. 

The affordability measures will require legislation, which means the Liberals need support from another party to break the current two-month standstill in the House of Commons.

The impasse is over the government’s refusal to hand over documents related to a now-defunct green tech fund. No legislation can pass until debate on that issue ends, and a second waiting privilege motion regarding Randy Boissonnault’s ex-business partner is dealt with.

An NDP source tells CTV News that the party is still weighing its options over whether to support the Liberals and break the stalemate in the House of Commons.

Since Singh tore up the two-party supply-and-confidence pact in September, the NDP have gone vote-by-vote on helping keep the minority government afloat, but they are now the only party willing to continue doing so, as both the Conservatives and Bloc Quebecois are ready to trigger an early election.

This is a developing story. More details to come.

With files from CTV News Chief Political Correspondent Vassy Kapelos