Facing declining poll numbers and a looming federal election, Prime Minister Justin Trudeau’s government unveiled a multi-pronged plan Thursday aimed at easing the burden of rising costs on Canadians, The Associated Press reports.
The initiative includes a temporary reduction in the federal goods and services tax (GST) and one-time payments to millions of citizens.
Announced at a Toronto press conference, the measures are intended to address widespread public dissatisfaction with the cost of living.
The plan will see eligible Canadians who earned up to CAD 150,000 (some US$107,440) in 2023 receive a one-time payment of CAD 250. An estimated 18.7 million Canadians will benefit from this direct cash injection, with the government arguing that even higher-income earners are feeling the strain of inflation.
A temporary GST reduction will also take effect from December 14th to February 15th. This tax break will apply to a range of goods and services, including children’s clothing and shoes, toys, diapers, restaurant meals, beer and wine, Christmas trees, various snack foods and beverages, and video game consoles.
However, the announcement has been met with criticism. Conservative leader Pierre Poilievre dismissed the measures as a “two-month temporary tax trick,” arguing that it fails to offset planned increases in carbon taxes.
The timing of the announcement is highly significant, coming as the Liberals trail the Conservatives by a considerable margin in recent polls. The Nanos poll shows the Liberals at 39% support compared to the Conservatives at 26%, a gap of 13 percentage points. The poll of 1,047 respondents has a margin of sampling error of plus or minus 3.1 percentage points.
Trudeau has confirmed he will lead the Liberal Party into the next election, which could be held anytime between this fall and October 2024. The Prime Minister faces a significant challenge to secure a fourth consecutive term, a feat unseen in Canada for over a century.
