Trudeau Says No Plan to Expand $250 Cheque Eligibility After GST Bill Clears Commons

Prime Minister Justin Trudeau rises to respond to questions from the opposition during question period, in Ottawa on Nov. 26, 2024. The Canadian Press/Adrian Wyld

Prime Minister Justin Trudeau says he will not expand the proposed $250 cheques to include more Canadians like seniors and those with disabilities, after the NDP set this condition to support any related legislation.

Trudeau made the comment the day after the House of Commons passed Bill C-78, which seeks to enact a two-month sales tax holiday. The bill, which didn’t include the $250 cheque provision, passed with NDP support and will go to the Senate for review.

Speaking at a press conference in Prince Edward Island on Nov. 29, Trudeau accused the NDP of not recognizing the challenges faced by working Canadians in the decision not to support the proposed $250 cheques.

On Nov. 21, Trudeau proposed a two-month “holiday” for Canadians from the federal sales tax (GST) amid cost-of-living challenges. Items exempted from the GST and HST include groceries, restaurant meals, beer, wine, certain pre-mixed alcoholic beverages, and certain items for children, among others.

At the same time, the Liberals announced the government would give $250 cheques to 18.7 million Canadians who worked in 2023 and earned $150,000 or less.

The NDP initially said it would support the two policies. NDP Leader Jagmeet Singh later said on Nov. 25 he did not support the cheques because they would leave out vulnerable Canadians, and called for the Liberals to split the policies into two separate pieces of legislation.

“We were told it would be anyone earning less than $150,000 who would get this,“ he said, adding the party had been under the impression it would include seniors, students, and Canadians with disabilities. “Right now we have learned it is going to exclude the most vulnerable. That is wrong. The Liberals need to fix this.”

Trudeau told reporters on Nov. 29 that the government wants to “be there to recognize and invest in” Canadians who helped the economy bounce back after the COVID-19 pandemic, which he said led to higher inflation. The prime minister added that the government has other measures to support seniors and disabled persons like increasing Old Age Security and implementing the Canadian Dental Care Plan.

“We realized that everyone needs a little extra support right now, and specifically those folks who’ve been working really, really hard over the past years,” he said.

Conservative Party Leader Pierre Poilievre and his party voted against the sales tax break, calling it an “inflationary” measure and a “temporary two-month tax trick.” The Bloc Québécois also voted against, calling it politically motivated in order to gain votes.

Removing the GST on goods would cost an estimated $1.6 billion in federal tax relief revenue, while the cheques would cost $4.6 billion, according to the federal department of finance.

The department said on Nov. 29 the federal government deficit between April and September was $13 billion, compared to an $8.2 billion deficit over the same period last year.