Liberals pass holiday relief package despite opposition

In Canada, on November 28, 2024, the House of Commons approved new legislation aimed at easing financial burdens on citizens amidst rising inflation. This measure, supported by the Liberal government and the New Democratic Party (NDP), includes a temporary Goods and Services Tax (GST) rebate and direct payments to eligible individuals. The GST exemption will be effective from December 14, 2024, to February 15, 2025, covering a variety of essential items such as children's clothing, diapers, holiday-related purchases, and food. Approximately 18.7 million Canadians are expected to benefit from this initiative, with an overall estimated cost of about $4.7 billion. Despite the intention to provide assistance, the proposal faced criticism from opposition parties. The Conservative Party, led by Pierre Poilievre, dismissed the relief strategy as a mere “tax trick,” emphasizing the urgency to abolish the carbon tax, which the party believes significantly impacts Canadians' finances. On the other hand, Bloc Québécois leader Yves-François Blanchet acknowledged the necessity for additional financial aid, but characterized the Liberal government's move as politically motivated, suggesting that it was aimed more at electoral gain than genuine relief. In contrast, the NDP has formed an alliance with the Liberals on this issue, supporting the GST holiday measures while advocating for more extensive future relief. NDP leader Jagmeet Singh acknowledged that while his party would have preferred a broader approach, the immediate assistance from the rebates would help many struggling Canadians, especially as the 2025 federal elections loom. This legislation, seen as a significant step in addressing the affordability crisis, coincides with escalating public dissatisfaction with the government due to ongoing high inflation. As the holiday season approaches, the effectiveness of this relief package and its implications for the governing Liberal Party's popularity remain uncertain amidst the broader economic challenges faced by the Canadian populace.