Trudeau Announces Sales Tax Cuts and Direct Payments to Canadians Ahead of Election
Canadian Prime Minister Trudeau Announces Temporary Tax Breaks and Cash Payments Amid Election Pressure
Prime Minister Justin Trudeau’s government unveiled plans Thursday to temporarily remove the federal sales tax on select items and provide direct payments to millions of Canadians to ease the burden of rising living costs as a federal election looms.
The measures aim to address voter dissatisfaction amid a cost-of-living crisis. Trudeau, speaking at a Toronto press conference, stated, “Our government can’t set prices at the checkout, but we can put more money in people’s pockets.”
Under the plan, Canadians who worked in 2023 and earned up to 150,000 CAD (approximately $107,440 USD) will receive a one-time payment of 250 CAD. Even individuals at the higher end of the income threshold have reportedly struggled with financial pressures. An estimated 18.7 million Canadians are expected to benefit.
The federal goods and services tax (GST) relief will start on December 14 and run through February 15. Eligible items include children’s clothing, toys, diapers, restaurant meals, alcoholic beverages, Christmas trees, snack foods, and video game consoles.
However, some critics have labeled the plan as a political maneuver. “Politically, it’s probably too little too late and feels like a desperate move by an unpopular government,” said Daniel Béland, a political science professor at McGill University. He also criticized the policy from a fiscal perspective.
Facing challenges to secure a fourth consecutive term—a feat not achieved by a Canadian prime minister in over a century—Trudeau’s Liberal Party trails the opposition Conservatives by a significant margin in the latest Nanos poll (39% to 26%).
Trudeau initially captivated the nation in 2015, leveraging his family’s political legacy to champion a liberal resurgence after nearly a decade of Conservative leadership. Yet rising post-pandemic living costs have dented his popularity, leaving his party grappling to regain voter trust.
The upcoming election could take place anytime between this fall and October 2025.
