The return of the GST on groceries has caused a sharp rise in food price inflation, with prices increasing by 2.8% in February, the highest since April 2022. The Liberal government reinstated the GST on February 14, ending a two-month break that had previously eased the cost of food for Canadian families.
The NDP argues that the temporary GST holiday demonstrated its effectiveness in lowering prices and easing financial strain on families. They are now calling for the permanent removal of the GST on groceries and other essentials, such as diapers, car seats, and utility bills. The NDP claims that this policy would help working Canadians, unlike tax cuts for the wealthy that both the Liberal and Conservative parties are proposing.
While some, like economist Mark Carney and Conservative leader Pierre Poilievre, have criticized the GST holiday, the NDP maintains that the tax break is essential for controlling inflation and supporting everyday families. The party is committed to ensuring this relief continues and is calling for a broader expansion of tax-free essentials.
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