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Federal Government plans to give $250 cheques to millions of Canadians, cut GST over holidays on select items

By Digital News Nov 21, 2024 | 12:21 PM

 

Ottawa plans to temporarily lift the federal sales tax off some items just in time for Christmas and send cheques to millions of Canadians this spring.

The GST break would begin Dec. 14 and end Feb. 15, and would apply to items including children’s clothing and shoes, toys, diapers, restaurant meals and beer & wine.

It also applies to Christmas trees — both natural and artificial — along with a variety of snack foods and beverages, and video game consoles.

Canadians who worked in 2023 and earned less than $150,000 would also receive a $250 cheque in the spring.

About 18.7 million people will receive the cheques, costing the government about $4.7 billion, while the GST break is expected to cost another $1.6 billion.

The measures come as an inflation-driven affordability crunch has left voters unhappy with the Trudeau government.

High inflation has also put pressure on the Liberals to avoid introducing measures that would stimulate spending and fuel price growth.

The measures still need to pass through the House of Commons.

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