Trudeau government to announce GST vacation on certain items before Christmas

 

The Liberal government and the NDP have agreed to introduce a two-month GST vacation on certain items before the holiday season, Radio-Canada has learned. 

The measure, to be announced Thursday, is part of a multi-billion-dollar package designed to provide relief to families hit by rising prices. Ottawa also plans to send cheques to some Canadians in the spring.

Sources said the federal government will announce the temporary GST relief Thursday, which should take effect before Christmas. A long list of items are targeted, including certain grocery products on which the federal tax applies, such as beer, wine and prepared hot meals.

Ottawa will also temporarily suspend the GST on diapers, children's clothing and shoes, children's car seats and toys, among other items.

Radio-Canada and CBC News sources have also confirmed that the government intends to send individual cheques to Canadians in a certain income bracket in the spring. 

These two measures, expected to cost several billion dollars, will be contained in a single bill that the NDP intends to support in the House of Commons, according to a source familiar with the discussions. 

On Wednesday evening, NDP leader Jagmeet Singh said he would support the government's GST proposal.