What might $6.3 billion be used to better the lives of Canadians?
Well, we do have a number of crises to contend with, including housing.
The $6.3 billion could go towards bolstering Canada’s housing supply, perhaps through doubling the $6 billion the federal government has already committed to the Canada Housing Infrastructure Fund, for pressing drinking water, wastewater, stormwater and solid-waste infrastructure needs (an initiative Conservative leader Pierre Poilievre barred Conservative MPs from promoting in the constituencies they supposedly work for). Or it could be added to the $4.4 billion Housing Accelerator Fund, which provides local governments with funding aimed at increasing the supply of housing.
Instead of going to any one big ticket item, however, the federal government wants to give an estimated $6.3 billion back to Canadians, in part through a two-month GST holiday, starting Dec. 14. For British Columbians, that means saving the five-per-cent tax on such things as restaurant meals, snacks, prepared foods, booze, children’s clothing, diapers and car seats, toys (educational for ages 14 and under), video games, books, newspapers and Christmas trees.
Sorry, no GST holiday to be had on gasoline, hydro or natural gas.
As an added gift, some 18.7 million Canadians who worked in 2023 and earned $150,000 or less can expect a cheque for $250 (leaving out seniors and others who did not or were unable to work).
Poilievre and the Conservatives are calling the GST holiday a “temporary two-month tax trick.” To be fair, it’s one month longer than the GST holiday pledged by former Conservative leader Erin O’Toole in his 2021 election campaign.
While the GST holiday could be viewed as a thinly veiled attempt at pre-election voter placation, it is also a step towards appeasing the federal NDP, which was quick to take credit for the initiative.
“The NDP is delivering a winter tax holiday to Canadians. The prime minister’s office just informed us that he’s caving to our Tax-Free-Essentials campaign — partly,” said NDP leader Jagmeet Singh in a Nov. 20 statement.
The NDP had pushed for something more long-term. However, Singh said the party will “vote for this measure because working people are desperate for relief, and we’re proud we delivered for them again.”
This GST holiday may bring relief to Canadians, but it could also be viewed as an effort by the Liberals to regain the NDP’s support so as to end a Conservative-led filibuster that’s had the House of Commons in gridlock since late September 2024.
The Cons have been hounding the Liberals to hand over all RCMP documents (unredacted) about a former green-tech foundation, Sustainable Development Technology Canada, which was found to have misspent government money. Allegedly, not all of the documents were handed over by a specified deadline and, with the agreement of House Speaker Greg Fergus that the "House has the undoubted right to order the production of any and all documents," the Cons have been filibustering their own privilege motion. This has left the House unable to proceed on forwarding new legislation or passing bills.
Meanwhile, RCMP Commissioner Mike Duheme has warned obtaining documents through the house motion could, in the criminal investigation, "give rise to concerns under the Canadian Charter of Rights and Freedoms."
I'm not sure how much British Columbians will notice the GST holiday. As for the cheques, there's now pushback from critics, including from the NDP, to the limitation on those who would qualify to receive them.
Overall, this $6.3 billion tax break appears to be more about party politics than serving the best interest of Canadians.
