In an effort to combat rising inflation and ease the financial burden on Canadians, the federal government has introduced new measures, including a two-month GST holiday and a $250 rebate for eligible workers. Starting December 14, the GST will be temporarily suspended on certain goods, such as prepared foods, snacks, children’s clothing, toys, and Christmas trees. The holiday will last until February 15, 2025, providing families with a break during the holiday season. For example, a family spending $2,000 on eligible items can save about $100, with higher savings in provinces that have the HST.
Additionally, the government will issue $250 cheques to 18.7 million Canadians who earned $150,000 or less in 2023. These payments, part of the new “Working Canadians Rebate,” will be delivered in early spring 2025. While these measures are designed to alleviate financial strain, opposition leaders have expressed concerns that they could fuel inflation in the long term. Despite this, the government argues that the spending is sustainable, pointing to Canada’s strong financial position. The total cost of these initiatives is expected to exceed $6 billion, reflecting the government’s commitment to supporting families during challenging times.
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