Canada’s federal government in Ottawa is planning to give struggling consumers a tax break over the Christmas holidays.
Prime Minister Justin Trudeau is proposing to cut the federal goods and services tax (GST) on a slew of items over a two-month period, including toys, Christmas trees, and beer.
The proposed GST break would begin on Dec. 14 and run until Feb. 15, 2025. Other items the tax holiday would apply to includes children’s clothing, shoes, and restaurant meals.
At the same time, Trudeau’s government is also promising to send Canadians who earn less than $150,000 a rebate cheque worth $250 in April 2025.
The government says the tax break and rebate cheque are aimed at helping Canadians struggling with the cost of living. Opposition politicians are accusing Trudeau of buying votes.
The $250 rebate cheques would go to 18.7 million eligible people and cost Ottawa an estimated $4.7 billion. The GST break is expected to cost an additional $1.6 billion.
The proposed measures from the federal government come amid an affordability crunch for many Canadians who continue to struggle with inflation and elevated interest rates.
The measures also come ahead of the next federal election that is scheduled to take place in October 2025 but could come sooner if Trudeau’s minority government falls in Parliament.