Canadians are reacting to Prime Minister Justin Trudeau’s promise to provide $250 rebate cheques to Ontario taxpayers along with a goods and services tax (GST) tax break on select groceries and alcohol.
On Nov. 21, Trudeau announced all Canadians will receive a tax break from Dec. 14 to Feb. 15, 2025.
The GST tax break applies to certain items such as pre-made meals, all restaurant meals, snack foods, alcoholic beverages below 7 per cent alcohol by volume (ABV), children’s clothing and toys, Christmas trees, and books.
The government says removing GST at checkout will provide approximately $1.6 billion in federal tax relief and $100 in savings to a family that spends $2,000 from the list of qualified items.
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Most of the tax break items listed on the Government of Canada’s website are holiday related, rather than essential groceries like fruits and vegetables.
“Giving a temporary 5% break on a few items is good, and will help stretch the buying power at the checkout of those at the lowest end of the wage spectrum. Though many already receive a GST/HST rebate. Lasting solutions to affordability require more than the bare minimum,” Ontario Living Wage Network (OLWN) director of communications Craig Pickthorne told Now Toronto.
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Pickthorne says restaurants might see more customers in their doors and spending more, but believes there needs to be a long lasting solution to increase affordability in Toronto.
“For example, encourage owners to pay a living wage to all staff, and in return we could ease their Workplace Safety and Insurance Board (WSIB) burden, offer tax relief, or any number of permanent measures that will last longer than a wheel of brie, or what has just been announced,” he said.
The government also announced Canadian residents over 18 years old who filed their 2023 income tax returns before Dec. 31, 2024 will receive $250 in early 2025.
Canadians who claimed tax credits for the Canada Pension Plan or claimed Employment Insurance (EI) benefits along with an individual net income below $150,000 in 2023 are eligible for the rebate.
Some Torontonians think the tax relief and rebate are helpful for the holiday season, yet are also hoping for more compensation from the government.
“We all know the cost of living is going up and what we’re getting paid isn’t, so whatever extra little bits or break the government can give us feels like a good thing.” Film industry professional Lindsay Walker told Now Toronto.
“When else would he do it other than when he’s decided to do it? We don’t know if there’s an election coming up or if he’ll even run again. To be perfectly frank, this makes a hell of a lot more sense than $200 from our provincial government that should be going to healthcare,” Walker continued.
“I think it’s great for people to use that money elsewhere wherever they need it. That’s extra income to be disposed of however families need it…[but] $250 what’s that? That’s nothing, but you know what he’s trying. It’s OK,” Food service worker AJ told Now Toronto.
Meanwhile, others are unsure if they are eligible for the rebate or what exactly the GST tax relief entails.
“I don’t really follow up on those things and they don’t affect me in any kind of way. It’s good to know, so I’ll wait and see next year,” Randy Sikan told Now Toronto.
“Honestly, I’m not sure how applicable the rebate is to me because I’m a student right now and I don’t have a job. I know it’s currently based on income and stuff like that. I haven’t looked too much into it, so I guess I’ll see how it is,” Simon Gellatly told Now Toronto.
“He’s probably just trying to help with the cost of living situation by giving people a little money back in their pockets, so they can spend on essentials and stuff they need,” the full-time student continued.
“I’m excited about the discount because we don’t have to pay that much taxes, but I’m not really sure what it will turn into in the long run. I’ll be interested to see that as well, but for the short-term I’m really excited about the discount on bakery foods and coffee.” Retail employee Amy C., told Now Toronto.
Online, some Canadians are also reacting to the $250 rebate and temporary GST tax break.
“Then Loblaws (and company) will increase prices equivalent to the GST cut to cash in on this,” one person said on Reddit.
“Handing out $250 cheques and temporarily putting the GST on hold for select items in order to address the affordability crisis will have about the same impact as putting an ice pack on a chest wound,” an X user said.
Others are commenting on Trudeau’s intentions to make this recent decision.
“Almost like there’s an election looming in 2025. A small break on items won’t make us forget the last 9 years and how he ranked this country to a third world dumpster fire,” one person commented on Reddit.
“Let the vote buying begin,” another person on Reddit said.
In a press conference on Nov. 21, Federal Conservative leader Pierre Poilievre commented on Jagmeet Singh’s decision to back down and support Trudeau along with the $250 rebate and GST tax relief.
“The NDP Liberal Coalition is back together… With Jagmeet and Justin, it’s double trouble for Canadians…Today what we have is a two month temporary tax trick that will not make up for the permanent quadrupling carbon tax on heat, housing, food, and fuel, all to save Justin’s job and Jagmeet’s pension,” Poilievre said.
Instead of confirming if he would be voting for or against Trudeau’s plan, Polilievre proposed to permanently cut the carbon tax and GST on new homes.
