Canadian Prime Minister Justin Trudeau has offered a festive sales tax break, more than a month before Christmas while dealing with frustrations over the cost of living.
“For two months, Canadians will enjoy real savings on their purchases,” Prime Minister Justin Trudeau announced at a press conference.
“While our government can’t control checkout prices, we can put more money in people’s pockets to provide the relief they need. Many are feeling the financial squeeze, and we’re here to help.”
Announced on Thursday, the temporary measure will eliminate sales tax on a selected range of goods for two months during the holiday season.
Those items include:
Children’s clothing
Children’s footwear
Children’s diapers
Children’s car seats
Newspapers
Books
Christmas trees
Food and beverages that are normally not tax-exempt, such as prepared foods, sweets, alcohol and sodas
Children’s toys for under-14s
Video-game consoles
Opposition Leader Pierre Poilievre criticised the initiative as “a trick” designed to distract from the government’s role in escalating living costs as he prepares to challenge Trudeau in the upcoming election.
Canadian inflation reached a high of 8.1% in 2022 but has since dropped to 2% this November, according to Statistics Canada. Despite the decline, rising costs for essentials like rent and groceries continue to burden many Canadians.
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If approved by Parliament, PM Trudeau’s limited tax relief will be in effect from December 15 to February 15. The plan aims to eliminate the federal goods and services tax— or the harmonised sales tax in provinces that merge federal and provincial taxes — on a select range of items.
The government estimates that Canadians could save between C$100 and C$260 (£56.86-£147.82) if they spend C$2,000 (£1,137.10) during this period. But this holiday savings initiative is expected to cost the treasury approximately C$1.6 billion, according to a finance official speaking to CBC News.
