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Temporary GST cut will save taxpayers money, but not nearly enough

Author: Franco Terrazzano 2024/11/21

OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to make its temporary GST cut permanent and provide further tax relief. 

“It’s good to see Canadians are finally getting some relief from this government’s high-tax burden,” said Franco Terrazzano, CTF Federal Director. “This tax cut will save Canadians money during an expensive time.

“But Prime Minister Justin Trudeau needs to make this relief permanent, because if he re-imposes sales taxes on diapers and rotisserie chickens after the holidays, it will be unacceptable to taxpayers.”

Today, the federal government announced it will remove the GST from children’s clothes, toys, diapers and car seats, as well as Christmas trees, beer, wine and cider, restaurant meals and prepared groceries, among other items. 

The GST cut will save taxpayers an estimated $1.6 billion over two months, according to the government. 

Ottawa plans to end the GST holiday on Feb. 15 and re-impose the GST on all these items, including car seats and prepared groceries.

“The tax relief is helpful now, but do politicians really think taxpayers will be able to afford to pay more for all of these essentials on Feb. 16?” Terrazzano said. “Ottawa made life more unaffordable by hiking carbon taxes, payroll taxes, alcohol taxes and capital gains taxes, so the government needs to go beyond a temporary tax cut to undo the damage it has done.

“After raising taxes on everything all the time, temporary relief won’t cut it.”


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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