Prime Minister Justin Trudeau during Question Period in Ottawa. Source: CPAC
The House of Commons passed a bill on Thursday to enact a two-month GST holiday on items such as children’s toys, books, restaurant meals, beer, and wine.
The measure, supported by the Liberals and NDP, faced opposition from the Conservatives and Bloc Québécois.
The bill passed swiftly after the NDP agreed to pause other parliamentary debates to move it forward.
The tax exemption, expected to start on December 14 and end on February 15, 2025, will now head to the Senate for approval.
Estimated to cost $1.6 billion in lost revenue, the measure aims to provide short-term relief amid high living costs.
The NDP demanded the Liberals remove a $250 rebate cheque proposal from the legislation, saying the program excluded many Canadians. They are eventually hoping to revisit the issue and make more Canadians eligible for the rebate than initially planned.
Conservative Leader Pierre Poilievre opposed the tax holiday, calling it a “temporary two-month tax trick.”
