Canada PM Trudeau Announces Temporary Tax Relief and Cheques Amid Rising Living Costs
The Canadian Prime Minister, Justin Trudeau, has disclosed that his government will temporarily remove the federal sales tax on several items and distribute cheques to millions of Canadians grappling with rising costs as a federal election approaches.
These initiatives come in response to a cost-of-living crisis that has left many voters dissatisfied with Trudeau’s leadership ahead of an election that could occur any time between this autumn and next October.
Trudeau disclosed this at a press conference in Toronto, “Our government can’t set prices at the checkout, but we can put more money in people’s pockets.”
According to the plan, Canadians who worked in 2023 and earned up to 150,000 Canadian dollars (US$107,440) will receive a cheque for 250 Canadian dollars. Trudeau pointed out that even those at the higher end of this income range are struggling to manage.
An estimated 18.7 million Canadians are expected to receive this one-time payment. The federal goods and services tax exemption will commence on 14 December and end on 15 February.
The tax exemption will cover various items, including children’s clothing and shoes, toys, diapers, restaurant meals, beer, wine, Christmas trees, various snack foods and beverages, and video game consoles.
Pierre Poilievre, the leader of the opposition Conservative party, criticised the announcement as a “two-month temporary tax trick” that fails to compensate for the increasing carbon taxes.
Trudeau has affirmed his intention to lead the Liberal Party into the next election, which could be held anytime up to next October.
In 2015, Trudeau invoked the star power of his father to revive the country’s liberal identity after nearly a decade of Conservative rule. However, he now faces significant challenges, as Canadians express frustration over the cost of living post-COVID-19 pandemic.
The Liberals are trailing the opposition Conservatives, 39% to 26%, according to the latest Nanos poll, which surveyed 1,047 respondents and has a margin of error of plus or minus 3.1 percentage points.
