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Canadian Prime Minister Justin Trudeau’s government announced plans on Thursday to temporarily lift the federal sales tax from a number of items and send cheques to millions of Canadians who are dealing with rising costs and as a federal election looms.
“Our government can’t set prices at the checkout, but we can put more money in people’s pockets,” Trudeau said at a press conference in Toronto.
Under the plan, Canadians who worked in 2023 and earned up to C$150,000 (US$107,440) will receive a cheque for C$250. Trudeau noted that even those earning at the high end of that amount have been struggling to get by.
An estimated 18.7 million Canadians will receive the one-time cheque.
The federal goods and services tax break would begin on December 14 and end on February 15.
The government said the tax break will apply to a number of items including children’s clothing and shoes, toys, nappies, restaurant meals, beer and wine. It also applies to Christmas trees, a variety of snack foods and drinks and video game consoles.