Members of Parliament are set to vote on a Liberal bill proposing a temporary “tax holiday” for Canadians that is expected to pass with the support from the New Democratic Party.
The legislation, which was tabled on Wednesday, calls for a two-month break on the goods and services tax or harmonized sales tax on dozens of items, including certain groceries, alcoholic beverages and children’s clothing.
The vote in the House of Commons is expected to take place Thursday afternoon after question period.
“By removing the GST from groceries, essential items, and holiday staples, we’re helping you save a little extra money for the new year,” Deputy Prime Minister and Finance Minister Chrystia Freeland said on X, formerly known as Twitter, on Wednesday.
“Today, we introduced legislation to make this happen. All parties should come together to deliver this much-needed relief for Canadians.”
The bill does not include a $250 rebate plan that was originally proposed by the Liberals alongside the GST holiday last week.
The bill was tabled with the help of the NDP to temporarily stop debate on a Conservative filibuster.
The NDP only agreed to support the bill after Freeland separated the GST break from a promise to also send $250 to most working Canadians in the spring.
The NDP wants that benefit expanded to also go to non-working seniors and people with disabilities who don’t have a working income.
During a debate in the House of Commons Wednesday night, NDP Leader Jagmeet Singh said the bill should pass, even though Conservative Leader Pierre Poilievre “hates it.”
“New Democrats won’t let him win the fight,” Singh said.
He added that the NDP wants the GST permanently off daily essentials and monthly internet, phone and home heating bills.
Conservative finance critic Jasraj Singh Hallan said that the tax break is “nothing but a cheap gimmick and something just to buy votes from Canadians.”
If passed, the tax break will also apply to restaurant meals, snacks, prepared foods, children’s toys, car seats, books, print newspapers, puzzles and Christmas trees.
It is set to remain in effect from Dec. 14 till Feb. 15.
According to the federal government, the proposed tax break will save taxpayers an estimated $1.6 billion over two months.
The government says someone spending $2,000 on such items over the two-month period will save between $100 and $260 depending on the province.
The difference is because the four Atlantic provinces and Ontario have a harmonized sales tax with Ottawa, which means the entirety of that – 15 per cent in the Atlantic and 13 per cent in Ontario – will be lifted.
Other provinces will only save the five per cent GST unless those governments choose to lift their provincial sales taxes as well.