Tories to Vote Against GST Holiday, Poilievre Calls Measure ‘Inflationary’

Conservative leader Pierre Poilievre rises during question period in the House of Commons on Sept. 26, 2024. The Canadian Press/Adrian Wyld

The Conservatives will not support the Liberals’ proposed two-month sales tax pause for the holidays, says Tory Leader Pierre Poilievre, describing the measure as inflationary.

A vote on the measure could take place Nov. 28 after the Liberal government tabled related Bill C-78, which the NDP pledged to support.

“Common sense Conservatives will vote against this irresponsible inflationist tax, temporary two-month tax trick, and instead push our plan to axe the carbon tax and axe the sales tax on new homes for everyone, for good,” Poilievre told reporters in Ottawa on Nov. 28.

Poilievre accused Prime Minister Justin Trudeau of using the proposed tax holiday to improve his political standing and said the measures would cost billions.

The Department of Finance said the tax holiday, which would apply to various goods such as children’s toys, snack food, and beer, will provide an estimated $1.6 billion in tax relief.

The Liberal government proposed this measure combined with the provision of $250 cheques to working Canadians who have a net income of less than $150,000 a year.

NDP Leader Jagmeet Singh said his party supports the sales tax rebate but is opposed to the cheques because the measure doesn’t include seniors and people with disabilities.

“Tomorrow night, a GST/HST holiday will be passed,” Singh said Nov. 27 on social media. “Pierre Poilievre hates it — but New Democrats won’t let him win the fight.”

Finance Minister Chrystia Freeland tabled Bill C-78 in Parliament on Nov. 27. The legislation covers the GST/HST holiday but not the $250 cheques.

During an announcement about the legislation, Freeland noted that inflation has fallen to 2 percent and the Bank of Canada has cut interest rates four times this year. Despite that, the holiday season often brings increased expenses for many Canadians, she said.

“Helping Canadians celebrate with family and friends is something all Parliamentarians and all parties should support,” Freeland said in a statement. The proposed tax holiday would apply from Dec. 14 to Feb. 15.

Poilievre was asked by reporters why he’s against the measure since he has previously advocated for tax reductions.

“This isn’t a tax cut. This is an inflationary, two-month, temporary tax trick that will drive up the cost of living,” Poilievre responded.

He pointed to comments made by Canadian professor and researcher Sylvain Charlebois, who said the tax break would eventually make food more expensive.

Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, told The Epoch Times last week grocers could increase their prices to fill the void left once the tax holiday expires.

Poilievre said that inflation happens “when government dumps a bunch of cash into the country without creating more of what cash buys.”

The Tory leader said his tax cuts would not just be about lowering costs but about “sparking more production.”

Economists have had different takes on the measure proposed by the Liberal government. Some say the tax break could influence the Bank of Canada’s decision on rate cuts due to its potential to generate higher demand, while others say the impact on inflation will be minimal.

“There’s no way it’s going to give you a big effect,” Mario Seccareccia, an economics professor at the University of Ottawa, previously told The Epoch Times.