Liberals’ ‘tax holiday’ bill put forward without $250 cheques – National
The Liberal government on Wednesday introduced legislation to implement its “tax holiday” for Canadians, but as a stand-alone bill that does not include a promised $250 rebate plan that has faced calls for expanded eligibility.
Under the Liberals’ proposal, the bill will see the goods and services (GST) or harmonized sales tax (HST) slashed from a slew of items, including certain groceries.
Deputy Prime Minister and Finance Minister Chrystia Freeland said on social media she hoped all parties come together to pass the GST relief plan quickly.
Part of the government’s original plan was to have Canadians also receive a $250 cheque in April 2025 if they had worked in 2023 and earned up to $150,000 that year.
But late Tuesday, NDP Leader Jagmeet Singh signalled his party would not support the original planned legislation as they wanted to see the rebate cheques expanded to include seniors, students, people on disability and those unable to work last year.
He reiterated Wednesday morning that his party would only support legislation to implement the GST break.
The shift came just days after originally stating he would support the idea as he thought the rebate cheques would go to anyone who earned under $150,000 last year.
Singh had also said his party would open the procedural “gates” including motions to extend the sitting hours of the House of Commons to debate and pass the legislation, as long as it was separate from the $250 cheques, to ensure the GST break would take effect as promised on Dec. 14.
The bill to implement the GST break is now expected to come to a vote on Thursday.
It’s not known at this time when a bill will be presented for the proposed $250 cheques.
A spokesperson for Finance Minister Chrystia Freeland told Global News last week that the rebate will go to Canadians who have made less than $150,000 in net income in 2023, and either have received employment insurance (EI) benefits, paid EI premiums or made CPP contributions to qualify.
The spokesperson said it “would be categorically false to say seniors, Canadians with disabilities and Canadians on parental leave are excluded.”
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Asked last week why retirees or some persons with disabilities who cannot work were not getting the cheques, Prime Minister Justin Trudeau said Ottawa has been taking action to help the “most vulnerable Canadians,” citing the recent 10 per cent OAS increase.
The Bloc Québécois is also pushing for the rebates to be sent to retirees.
MP Andréanne Larouche, who is the Bloc’s spokesperson for seniors, said her party will vote against the Liberals’ proposal if seniors are not included in it.
“Our position is clear — we ask that seniors need to be included,” she told reporters during a news conference on Wednesday.
The federal rebate plan was among the issues that Trudeau and his Liberal MPs were set to discuss at a caucus meeting on Wednesday.
Speaking to reporters ahead of the meeting, Housing Minister Sean Fraser said the Liberals will “have an opportunity to have a conversation” about expanding the eligibility for seniors, but did not commit if this could happen.
“If you have a choice between structural changes and one-time supports, I think it’s worth having that conversation at the same time to make sure you land in a place where things are going to make a big difference in the long term possible.”
Given the NDP’s demand, Fraser added that Ottawa will have to “work through some these issues” to get the proposal passed by the House of Commons.
The Liberals, who have a minority government, will need the support of at least one other party to see this plan come into effect by Dec. 14.
Liberal MP Marcus Powlowski said Wednesday he’s not opposed to expanding the eligibility for the $250 cheques.
He told reporters: “I could certainly sympathize with seniors to say why aren’t they getting it, it’d be nice to give it to them. Whether it’s affordable, that’s a big question.”
Liberal MP John McKay said the plan was “imperfect” but it’s a “gesture that will actually move the needle in terms of affordability.”
“I thought it’s a good-faith attempt to try and alleviate some of the affordability concerns that we’ve had.”
If passed, the tax holiday would begin in mid-December, lasting for two months. It would remove the GST on prepared foods at grocery stores, some alcoholic drinks, children’s clothes and toys, Christmas trees, restaurant meals, books, video games and physical newspapers.
A privilege debate has held up all government business in the House since late September, with the Conservatives pledging to continue a filibuster until the government hands over unredacted documents related to misspending at a green technology fund.
The NDP said last week that it had agreed to pause the privilege debate to pass the legislation to usher in the GST holiday.
Singh said Tuesday that unless there are changes to the proposed legislation, he will not support pausing the debate.
—With files from The Canadian Press.
© 2024 Global News, a division of Corus Entertainment Inc.
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