Trudeau announces temporary GST break on some items including some groceries, beer

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Canadians can expect an early Christmas gift from the federal government this year.

Starting Dec. 14, the government will enact a two-month exemption period on GST from groceries (prepared foods including vegetable trays, pre-made meals, salads and sandwiches,) sit-down and take-out restaurant meals, beer and wine, children’s clothing and toys and diapers.

As well, Canadians who earned up to $150,000 in 2023 will also receive a $250 cheque sometime in April 2025.

“A government can’t set prices at check-out, but we can put more money in people’s pockets,” Prime Minister Justin Trudeau said at a Thursday morning press conference at a store in East Gwillimbury, ironically surrounded by prop groceries that largely aren’t subject to GST.

“It’s going to give people that relief they need, and a tax break over the next two months is going to help with the costs of everything as we approach the holidays and as we approach the new year.”

Thursday’s announcement aligns with calls being made by federal NDP Leader Jagmeet Singh, who is taking credit for the move.

“It’s far from the substantial and permanent relief the NDP wants to give Canadians,” Singh said in a statement issued late Wednesday. “As usual, the Liberals are letting people down with their choice to make this a short-term tax holiday, on only some items.”

Opposition Leader Pierre Poilievre accused Trudeau of being duplicitous.

“Today, what we have is a two-month temporary tax trick that will not make up for the permanent quadrupling carbon tax on heat, housing, food and fuel – and all to save Justin’s job and Jagmeet’s pension,” he said in a press conference.

“Ironically, in just a few months, Trudeau and the NDP plan to raise taxes on all the same items they claim they’re giving a break on, directly through the carbon tax.”

The new measures, which the government says will save taxpayers $1.6 billion over the two months, needs to be tabled as legislation in the House of Commons.

“I really hope all parties in the House can get behind this, so that we can pass this quickly, so that Canadians can get this relief as soon as Dec. 14,” Trudeau said.

But that may be easier said that done.

The House is paralyzed by an ongoing privilege motion tabled over the Trudeau Liberals’ refusal to comply with a production order seeking thousands of unredacted documents related to the green slush fund scandal.

The weeks-long stalemate would end today if the Liberals convince either the Bloc or NDP to support a closure motion, but neither party has expressed interest in doing so.

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Franco Terrazzano, of the Canadian Taxpayers Federation, said a temporary GST cut will save taxpayers money, and he is calling on Trudeau to make the GST cut permanent.

“It’s good to see Canadians are finally getting some relief from this government’s high-tax burden,” he said. “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.”

Terrazzano said the Trudeau Liberals’ hikes of taxes on carbon, payroll, alcohol and capital gains have made life unaffordable in Canada.

“After raising taxes on everything all the time, temporary relief won’t cut it,” he said.

bpassifiume@postmedia.com