Many are applauding the two-month tax holiday announced by both the federal and provincial governments yesterday, but plenty of questions remain.
Prime Minister Justin Trudeau says the GST will be removed from many essential purchases while the GST and HST disappears from all grocery items, including fast food, snack foods, restaurant meals as well as purchases like beer, wine, kids clothing, footwear and diapers. Toys will see the tax break as well including video games and board games.
The cut comes into effect December 15 and will last two months until February 15, capped off with a $250 cost of living cheque in April for every Canadian who worked in 2023 and earned less than $150,000.
Trudeau was asked whether any of the cost of living measures would have been introduced were the Liberals’ not so reliant on NDP support in the House of Commons.
“I’m glad the NDP has indicated that it’s going to be behind us on moving forward on a rebate and GST break for the next two months,” Trudeau told reporters yesterday.
Meanwhile, provincial finance minister Siobhan Coady says the two-month relief for residents will come at a significant cost to the province’s bottom line.
The exact amount, according to Coady, is not yet known as government is still conducting an analysis.
But, in conversations with Ottawa she anticipates it will be “tens upon tens of millions of dollars, possibly upwards to about $30-million a month.”
In 2022, the provincial government distributed $500 cheques to residents in time for the holidays.
However, in terms of matching the federal $250 cheques that will be sent out in April, Coady says that’s a no-go.
“At this point in time I don’t anticipate us doing something (like that.) The impact is significant to the province…and we’ve done it in the past.”
Our government is focused on affordability for families in Newfoundland and Labrador. We will be removing the HST from many goods and services for two months. I’m pleased to have worked with Minister Freeland and Minister LeBlanc on this measure to help with the cost of living. pic.twitter.com/HCfwnoUAWp
— Andrew Furey (@FureyAndrew) November 21, 2024
