There is growing pressure on the federal government to expand eligibility for its new $250 rebate plan that was announced last week alongside a “tax holiday” for Canadians.
Under the Liberal’s proposal, that has yet to be put to a vote in the House of Commons, the goods and services or harmonized sales tax will be slashed on a slew of items, including certain groceries.
In addition, Canadians who worked in 2023 and earned up to $150,000 will also receive a cheque worth $250 in April.
The New Democratic Party wants the rebate cheques expanded.
Speaking after a Canadian Labour Congress event in Ottawa on Tuesday, Singh said he’s open to passing the “tax holiday” legislation, but the rebate needs to include seniors, students, people who are on disability benefits and those who were not able to work last year.
Singh said he initially supported the idea because he thought the rebate cheques would go to anyone who earned under $150,000 last year.
A spokesperson for Finance Minister Chrystia Freeland told Motorcycle accident toronto today last week that the rebate will go to Canadians who have made less than $150,000 in net income in 2023, and either have received employment insurance (EI) benefits, paid EI premiums or made CPP contributions to qualify.
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The spokesperson said it “would be categorically false to say seniors, Canadians with disabilities and Canadians on parental leave are excluded.”
Asked last week why retirees or some persons with disabilities who cannot work were not getting the cheques, Prime Minister Justin Trudeau said Ottawa has been taking action to help the “most vulnerable Canadians,” citing the recent 10 per cent OAS increase.
The Bloc Québécois is also pushing for the rebates to be sent to retirees.
MP Andréanne Larouche, who is the Bloc’s spokesperson for seniors, said her party will vote against the Liberals’ proposal if seniors are not included in it.
“Our position is clear – we ask that seniors need to be included,” she told reporters during a news conference on Wednesday.
The federal rebate plan was among the issues that Trudeau and his Liberal MPs were set to discuss at a caucus meeting on Wednesday.
Speaking to reporters ahead of the meeting, Housing Minister Sean Fraser said that the Liberals will “have an opportunity to have a conversation” about expanding the eligibility for seniors, but did not commit if this could happen.
“If you have a choice between structural changes at one-time sports, I think it’s worth having that conversation at the same time to make sure you land in a place where things are going to make a big difference in the long term possible.”
Given the NDP’s demand, Fraser added that Ottawa will have to “work through some these issues” to get the proposal passed by the House of Commons.
The Liberals, who have a minority government, will need the support of at least one other party to see this plan come into effect by Dec. 14.
Liberal MP Marcus Powlowski said Wednesday he’s not opposed to expanding the eligibility for the $250 cheques.
He told reporters: “I could certainly sympathize with seniors to say why aren’t they getting it, it’d be nice to give it to them. Whether it’s affordable, that’s a big question.”
Liberal MP John McKay said the plan was “imperfect” but it’s a “gesture that will actually move the needle in terms of affordability.”
“I thought it’s a good faith attempt to try and alleviate some of the affordability concerns that we’ve had.”
If passed, the tax holiday would begin in mid-December, lasting for two months. It would remove the GST on prepared foods at grocery stores, some alcoholic drinks, children’s clothes and toys, Christmas trees, restaurant meals, books, video games and physical newspapers.
A privilege debate has held up all government business in the House since late September, with the Conservatives pledging to continue a filibuster until the government hands over unredacted documents related to misspending at a green technology fund.
The NDP said last week they had agreed to pause the privilege debate to pass the legislation to usher in the GST holiday.
Singh said Tuesday that unless there are changes to the proposed legislation, he will not support pausing the debate.
—With files from The Canadian Press
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